The S&P 500 E-mini’s dominant price action feature on Thursday was the early opening reversal down from the 60-minute moving average.
Thursday, Jan. 28, 2016
- Bar 1 - I will be here for half of the day. Big gap up above 60 minute 20 bar exponential moving average and testing top of yesterday bear channel, but small bar, tail, buy below or probably buyers at the low of the bar scaling in lower sellers above or probably sellers at the high of the bar scaling in higher
- Bar 3 - Opening reversal at 60 moving average but tail, bear bar 2, probably sellers above or probably sellers at the high of the bar scaling in higher and more sideways. Possible low of the day, ok swing buy or long
- Bar 4 - Opening reversal mdv, ok swing buy or long but low probability buy, probably sellers above, and sideways more likely than up
- Bar 6 - Fail, failure breakout 60 minute 20 bar exponential moving average second entry sell, good sell or short sellers below or probably sellers at the low of the bar, ok swing sell or short
- Bar 7 - Big bear breakout, always in short
- Bar 8 - Follow through, sell the close, but two legged pullback in a bull move at moving average. Consecutive bear bars, possible measuring gap, always in short, low probability buy, probably sellers above, and sideways more likely than up, but possible low of the day. Better to wait for a strong bull breakout, or more buying pressure and second entry buy
- Bar 11 - H2 3 at close of yesterday, but tight channel so probably sellers above or probably sellers at the high of the bar scaling in higher. Low probability so swing only or wait buy or long, but bull bar in sell climax so probably pullback and trading range within about 3 bars
- Bar 12 - Big bear bar late in bear at support low of yesterday so more likely exhaustion gap than measuring gap. Probably trading range soon for test moving average and 11 low and 12 high
- Bar 14 - Parabolic wedge 3 11, just above low of yesterday, good bulbar, possible low of the day, ok swing buy or long, but more likely minor trend reversal so trading range more likely and trading range for about 10 bars. Odds favor test of moving average and 12 high, but might get test down 1st
- Bar 15 - Breakout pullback sell or short, but consecutive bull bars, parabolic wedge sell climax, buy below or probably buyers at the low of the bar scaling in lower
- Bar 17 - Two legged pullback in a bear move but big bar, target above, low probability so swing only or wait sell or short