Emini S&P 500 slides lower on Friday: Brooks

Brooks Price Action Analysis for Friday, April 4

pending chart 2751

Sell climax and spike and channel bear so probably will bounce on Monday, possible to top of channel around 1870. Huge outside down bar day so probably inside day Monday. Weekly reversal bar and possible high of next several months, but still targets above equal top of weekly channel and measured move targets so might have one more leg up. Probably will test bottom of weekly channel (�short in may and go away�) and possible 1700 within next few months. Reasonable area to consider buying put spreads here or around 1900 - 1920 for 10% pullback.

  • Friday, April 4, 2014
  • Bar 1 - Expanding triangle, fail, failure breakout top of bull channel, measured move, ok swing sell or short and possible scalp. Bears want close of week below pink line = top of trading range on daily. Also, want test 60 minute 20 bar exponential moving average and bottom of channel and trading range. Green line =oow, bears want reversal bar on weekly
  • Bar 2 - Follow through, always in short, more down
  • Bar 3 - Big bear bar so possible exhaustion gap. More down
  • Bar 4 - Doji, still sell the close, but trading range likely so better to wait. Opening reversal buy or long but bear bar so low probability
  • Bar 5 - Breakout pullback sell or short but 2 dojis at moving average and close of yesterday and after sell climax so probably buy below or buyers at the low of the bar and probably scaling in lower and sideways, then possible trend resumption or trend reversal
  • Bar 6 - Opening reversal but 3 bar tight trading range so low probability, but might channel up for hours. Ok swing buy or long
  • Bar 7 - Breakout, probably more up
  • Bar 8 - More follow through, always in long, but probably trading range day since bars up bars down bars up
  • Bar 9 - Lower high major trend reversal but 3 strong bull bars so probably buy below or buyers at the low of the bar and probably scaling in lower and trading range. Swing stop below 6. Better to buy or long lower or better to wait for a strong bear breakout or second entry sell
  • Bar 12 - Breakout pullback buy or long, always in long, but middle of trading range. Always in long but need swing stop. Better to scalp
  • Bar 13 - Lower high major trend reversal double top, but always in long. Low probability, sideways more likely. Spike up and or down, bulls want channel up, bears want channel down
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.com]
About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at BrooksTradingCourse.com), several books on Price action (Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader, Wiley, 2009, and the 500,000 word, three-book series, Trading Price Action, Wiley, 2012), and numerous articles in Futures Magazine. He also provides live intraday E-mini price action analysis and free end-of-day analysis on www.brookspriceaction.com.

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