A treat.
The bonds hinged last week and then yields exploded. After being supported at the red line for 6 weeks, yields had a spring, rallied 2 boxes back into their previous range, hinged at the red line and then exploded. This was a nice trade for the prepared.
As pointed out yesterday, the price of the
SPX, has moved into a nice flat trading range and today has moved into a hinge position again. If the market rises 2 boxes, it will have been supported at a higher low and then made a higher high. If it falls 2 boxes is will have failed at a lower high and then made a lower low. That is why
Wyckoff, I believe called this a hinge. The count for a decline is over 100 points at the 1103.2 line. The count for an advance is more
complicated and I will discuss it when the time comes.
Remember the key bar here so far is the 13 million volume bar which was a selling climax. It was tested at 2 and then rallied to 3 this
morning. At 3 the demand diminished and selling hit at 10:00, The market was supported on a
narrow relatively high bar at 10:05 and then rallied weakly. The next sell-off until 12:20 witnessed little supply pressed on the market. The rally to 5 had small volume and many closes in the middle, implying
good selling into the rally. The rally to 6 had closes at the bottom. Demand was exhausted at 12:40. The sell-off began and had decent participation. It stopped at a higher low and rallied weakly into the close. Notice how the hinge looks on this chart.
Today could easily be a rally that failed with tremendous possibilities.
A treat.
The bonds hinged last week and then yields exploded. After being supported at the red line for 6 weeks, yields had a spring, rallied 2 boxes back into their previous range, hinged at the red line and then exploded. This was a nice trade for the prepared.
As pointed out yesterday, the price of the SPX, has moved into a nice flat trading range and today has moved into a hinge position again. If the market rises 2 boxes, it will have been supported at a higher low and then made a higher high. If it falls 2 boxes is will have failed at a lower high and then made a lower low. That is why Wyckoff, I believe called this a hinge. The count for a decline is over 100 points at the 1103.2 line. The count for an advance is more complicated and I will discuss it when the time comes.
Remember the key bar here so far is the 13 million volume bar which was a selling climax. It was tested at 2 and then rallied to 3 this morning. At 3 the demand diminished and selling hit at 10:00, The market was supported on a narrow relatively high bar at 10:05 and then rallied weakly. The next sell-off until 12:20 witnessed little supply pressed on the market. The rally to 5 had small volume and many closes in the middle, implying good selling into the rally. The rally to 6 had closes at the bottom. Demand was exhausted at 12:40. The sell-off began and had decent participation. It stopped at a higher low and rallied weakly into the close. Notice how the hinge looks on this chart.
Today could easily be a rally that failed with tremendous possibilities.
