Since moving above the blue reverse
trendline, the euro has had that up-down pumping action I consider to be the equivalent of
Wyckoff's buying or selling climax. A move below 145 constitutes a lower low and thus a potential change of trend.
The oil chart is not a great argument for inflation.
Our usual SPY chart was not usable because of print errors so we will use its 2
nd cousin the
DIA. First notice the increase in volatility over the past few days. Second, please notice that the
largesst uninterupted wave on this chart
occured today, in the morning break of 1 point. Obviously this is the largest reaction of the chart and as such a warning of possible trend change. As the Dow has tended to lead the S&P, not making a new high is significant.
ERROR CHART WILL NOT GO AWAY.
Today began with that up-down pumping action but it was angled sightly upwards. It is
especially noticeable in the first 30 minutes. So just as there was heavy selling in the first 30 minutes that was overcome by demand, that selling followed the rally higher over the course of the day. The 1's across the chart label heavy buying bars that are almost immediately reversed. Either the selling, the resistance to the move, or the buying will win out. Tomorrow promises a big economic report, the retail report and no doubt much of this selling was in anticipation of that. Regardless the day day ended with the up-down pumping action and the last bar of the day was an outside key reversal bar. The volume from about 2:30 on was very high and net,net prices did not move 5 points.
Well
itis no wonder the
pnf shows today as the largest reaction, the daily shows it as the only reaction. It is hard not to see today as a bullish test, falling and then recovering the loss and then some to make not only a test but also a reversal day. The low volume supports the idea that nothing is for sale beneath this market. Today demands strong high volume follow through on the upside, otherwise this low volume becomes part of a rally that failed to enlist enough support to continue.
Since moving above the blue reverse trendline, the euro has had that up-down pumping action I consider to be the equivalent of Wyckoff's buying or selling climax. A move below 145 constitutes a lower low and thus a potential change of trend.
The oil chart is not a great argument for inflation.
Our usual SPY chart was not usable because of print errors so we will use its 2nd cousin the DIA. First notice the increase in volatility over the past few days. Second, please notice that the largesst uninterupted wave on this chart occured today, in the morning break of 1 point. Obviously this is the largest reaction of the chart and as such a warning of possible trend change. As the Dow has tended to lead the S&P, not making a new high is significant. 
ERROR CHART WILL NOT GO AWAY.
Today began with that up-down pumping action but it was angled sightly upwards. It is especially noticeable in the first 30 minutes. So just as there was heavy selling in the first 30 minutes that was overcome by demand, that selling followed the rally higher over the course of the day. The 1's across the chart label heavy buying bars that are almost immediately reversed. Either the selling, the resistance to the move, or the buying will win out. Tomorrow promises a big economic report, the retail report and no doubt much of this selling was in anticipation of that. Regardless the day day ended with the up-down pumping action and the last bar of the day was an outside key reversal bar. The volume from about 2:30 on was very high and net,net prices did not move 5 points.
Well itis no wonder the pnf shows today as the largest reaction, the daily shows it as the only reaction. It is hard not to see today as a bullish test, falling and then recovering the loss and then some to make not only a test but also a reversal day. The low volume supports the idea that nothing is for sale beneath this market. Today demands strong high volume follow through on the upside, otherwise this low volume becomes part of a rally that failed to enlist enough support to continue.
