E-mini S&P trend reversal but bears fail to follow through

August 22, 2012 09:24 PM
Brooks' price action for Wednesday

pending chart 1519

Lower low major trend reversal, double top bear flag at moving average, broad bear channel, wedge bottom, higher low major trend reversal, double bottom failed breakout

  • Wednesday, August 22, 2012
  • Bar 1 - Yesterday was small pullback bear with trendline breakout at end of day. Bear bar but tails. Wait. Might be trading range day after big down yesterday
  • Bar 2 - Bull inside bar so lower low major trend reversal and ok swing, but tail so might be more sideways
  • Bar 3 - 2nd bull bar so always in long, more up
  • Bar 4 - 3rd bull bar, trend from the first bar bull. At moving average and tail so should be profit takers. Buyers below
  • Bar 5 - Bear body but tail. Trend from the first bar bull so buyers below. Report soon so ok to wait
  • Bar 6 - Breakout pullback buy or long but 3 bar tight trading range and report soon. Wait
  • Bar 9 - Doii, bear bar, two legged pullback in a bear move sell or short at moving average, or 2nd signal, but still always in long. Ok swing sell or short but probably buyers below
  • Bar 10 - Double bottom bull flag, higher low major trend reversal. Ok swing buy or long but tight trading range and doji so less reliable
  • Bar 12 - Small bull bars so ok to scalp part for 1 profit target bulls need breakout above moving average, then leg 1 equals leg 2 measureed move and test of 60 minute 20 bar exponential moving average.. This is 2nd bull spike today with bull gaps so subtle buying pressure
  • Bar 13 - Strong bear bar, close on low, another fail, failure at moving average. Ok to exit longs and wait to see if get breakout pullback buy or long soon since always in long as long as stays above 10 low, double bottom. Some bulls will hold low with stop below 10, but probably better to exit and look for another buy or long signal. Ok swing sell or short, but need breakout below 10. Probably ok sell or short below 10 since bulls will exit there
  • Bar 16 - Bear breakout but need follow through
  • [more Bar-by-Bar Analysis in the Forums at www.brookspriceaction.com]
About the Author

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.