Since we are modern tape readers, we get the option of looking at the entire field. I am beginning with the long bond interest rate because my market sense tells me that something is cooking here and perhaps it is the leader. We certainly have the possibility of a long period of accumulation beginning in August. After making a low in October, the market rallied to a higher high in November and then sold off to 11/17. The market was supported at an old support point, consolidate and had a spring to 42.0. A rally back into the trading range confirmed the strength of the buying and at 42.28 we made a higher low. At 42.56 we were on the hinge and move we did. The
retracement so far has been less than 50% and much of that small decline has been recovered by the last 2
x's on the chart.
This is a bearish chart. Last Friday had climactic volume and yesterday was an attempted rally that failed, indicating buyers were exhausted. Today we fell sharply with ease of movement. The line of least resistance for the immediate trend is down.
The market broke sharply and fell directly into a selling climax in the bars around 1. The first few
bars up the market rallies smartly and then runs into resistance around 10:30 as buying also weakens with the diminishing volume. The market has a test at 2 and again rallies smartly for the first few bars. Volume diminishes on the decline to 10:20 telling us more rally to follow. On this rally however the volume never recovers and the market has a buying climax at 3. Although buyers are absent on the rally to 4, selling is anemic until the selling climax at 5. The rally to 6 also is weak. So basically the market was supported at its lows and the rallies were very actively sold.
The 1o count flat area at the upper right of the chart is enough distribution to cause a little less than q 10% fall in prices. Mr
Wyckoff says these flat areas frequently represent distribution.
Do you see the trading range at the lower right supported at a slightly higher high? This chart currently on a hinge can support a rally.
Hinge treat in IBM
Should we not rally from the danger point we are on the springboard for a large decline.
Since we are modern tape readers, we get the option of looking at the entire field. I am beginning with the long bond interest rate because my market sense tells me that something is cooking here and perhaps it is the leader. We certainly have the possibility of a long period of accumulation beginning in August. After making a low in October, the market rallied to a higher high in November and then sold off to 11/17. The market was supported at an old support point, consolidate and had a spring to 42.0. A rally back into the trading range confirmed the strength of the buying and at 42.28 we made a higher low. At 42.56 we were on the hinge and move we did. The retracement so far has been less than 50% and much of that small decline has been recovered by the last 2 x's on the chart.
This is a bearish chart. Last Friday had climactic volume and yesterday was an attempted rally that failed, indicating buyers were exhausted. Today we fell sharply with ease of movement. The line of least resistance for the immediate trend is down.
The market broke sharply and fell directly into a selling climax in the bars around 1. The first few bars up the market rallies smartly and then runs into resistance around 10:30 as buying also weakens with the diminishing volume. The market has a test at 2 and again rallies smartly for the first few bars. Volume diminishes on the decline to 10:20 telling us more rally to follow. On this rally however the volume never recovers and the market has a buying climax at 3. Although buyers are absent on the rally to 4, selling is anemic until the selling climax at 5. The rally to 6 also is weak. So basically the market was supported at its lows and the rallies were very actively sold.
The 1o count flat area at the upper right of the chart is enough distribution to cause a little less than q 10% fall in prices. Mr Wyckoff says these flat areas frequently represent distribution.
Do you see the trading range at the lower right supported at a slightly higher high? This chart currently on a hinge can support a rally.
Hinge treat in IBM
Should we not rally from the danger point we are on the springboard for a large decline.
