Brooks price action: E-mini S&P

April 17

Thursday, April 17, 2014

  • Bar 1 - Doji, tight trading range, bad for scalping with stop entries unless using swing stop. Sell above or sellers at the high of the bar and probably scaling in higher buy below or buyers at the low of the bar and probably scaling in lower, breakout mode. Wedge top today/tick so might test trendline or bottom of channel 58 low or 19 low. Bulls want test of high of last week = lower high = 1866.50 = pink line above
  • Bar 3 - Double top high of yesterday but bull body, tight trading range. Low probability. Probably more tight trading range, buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 5 - Strong bear breakout so probably buy the close. Bears need follow through. Bears buying bull closes, bulls selling bear closes. Breakout mode. Limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 6 - Two legged pullback in a bull move 81 but 2 strong bear bars, tight trading range, probably sell above or sellers at the high of the bar and probably scaling in higher and more sideways. Might be always in short from 2 consecutive strong bear bars at top of big wedge. Fail, failure breakout high of yesterday so might test low of yesterday and gap on daily
  • Bar 9 - Double top lower high major trend reversal but bull body. Tight trading range so bears will sell the close. Bad sell or short sell below or sellers below or signal bar so buy below or buyers at the low of the bar and probably scaling in lower and more sideways, but should hit trendline below
  • Bar 11 - Breakout pullback buy or long from 6 two legged pullback in a bull move. Swing only since tight trading range
  • Bar 13 - Higher high major trend reversal, bear sell below or sellers below or signal bar, close on low, ok swing sell or short, but higher probability for buy below or buyers at the low of the bar and probably scaling in lower and two legs up from 12 breakout
  • Bar 15 - Higher high major trend reversal, fail, failure breakout high of yesterday second entry sell, wedge y1 33, wedge 9 12. Ok swing sell or short, but tight channel so probably not high enough probability unless swing stop and scale in for scalp and probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 17 - Breakout pullback buy or long but low probability, need swing stop below 10
  • Bar 20 - Wedge 1 79, wedge 12 14, micro double top, fail, failure breakout top of channel second entry sell, ok swing sell or short for possible high of the day
  • Bar 22 - Possible triangle 14 16, still always in long, ok swing buy or long, stop below 14 or 10. Ok swing sell or short, stop above 19. Breakout mode
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.com]

pending chart 2798

Bulls trying to test the 1866.50 lower high. Bears want a double top there, and bulls want a breakout above that lower high and then a move up to 1900 top of weekly channel. Odds favor trend down to 1700 area, but possible one more new high first. Reasonable to consider buying put spreads here or around 1900 for move down to around 1730 bottom of channel within next few months (short in May and go away).

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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