E-mini S&Ps reverse Thursday after early sell-off

December 27, 2012 02:12 PM

pending chart 1726

Spike and channel bear, higher low major trend reversal, reversal day

  • Thursday, December 27, 2012
  • Bar 1 - Yesterday = bear breakout of bull channel. 8 bar bear microchannel so 1st bull breakout should fail, failure. Wait
  • Bar 2 - Higher low major trend reversal buy or long, two bar revresal but 1st breakout should fail, failure. Wait
  • Bar 3 - 2 consecutive bull bars so always in long, but wait since bears see as or sell or short.
  • Bar 4 - Lower high major trend reversal sell or short but doji and 2 bull bars so lp. Swing only or wait
  • Bar 6 - 3 bear bars, probably always in short. Report so wait
  • Bar 9 - Bear inside bar, close on low, breakout pullback sell or short. Ok swing sell or short, targets below
  • Bar 10 - Huge bear bar, close near low, more down
  • Bar 11 - Big tail after sell climax, probably will bounce within bar or 2. Better to not sell or short close
  • Bar 15 - Bull two inside bars after micro double bottom. Probably ok scalp buy or long, but have to be fast. Better if get bear fail, failure breakout and reversal up. Odds favor trending trading range day since only 1 bar breakout. Upper trading range = yesterday. Probably sideways for hours, then trend resumption or reversal. Less likely, fail, failure breakout and low of the day or spike and channel bear
  • Bar 19 - Two legged pullback in a bear move, micro double top, ok scalp, but might become final flag
  • Bar 22 - Final flag but doji and 2 bear bars so probably just scalp buy or long
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.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.