Today was the day of the big announcement, the market closed on its high of the day, and volume was the lowest of the year so far. For the
Wyckoff trader the reflex explanation is lack of big buying interest, no demand. Needless to say it could also be lack of selling pressure. What argues against that is that if you look across the chart, the market never stayed around lows this long. Compared to the ease with which the market fell, with these struggling advances the direction of least resistance is
down.
The
SPX looks even more like a rally that is failing. These is very little lifting of supporting points over the past three days. Volume did not come into
today's rally. This as we will see for the conservative approach is very important
We have already discussed how bearish this chart is with potentially large counts. The minimum rally objective of 3 boxes across the 1055 line giving 1075 or so has been met. The problem is the counts across 1062.1 which look bullish and call for a large move. Since they could also be continuation counts for further decline, we will wait for this small trading range to be exited with signs and wonders, volume.
I did not follow my own analysis and play this because I felt the bonds would move in the opposite direction of stocks. I was wrong and the
Wyckoff analysis was correct.
Not much strength here.
Today was the day of the big announcement, the market closed on its high of the day, and volume was the lowest of the year so far. For the Wyckoff trader the reflex explanation is lack of big buying interest, no demand. Needless to say it could also be lack of selling pressure. What argues against that is that if you look across the chart, the market never stayed around lows this long. Compared to the ease with which the market fell, with these struggling advances the direction of least resistance is down.
The SPX looks even more like a rally that is failing. These is very little lifting of supporting points over the past three days. Volume did not come into today's rally. This as we will see for the conservative approach is very important
We have already discussed how bearish this chart is with potentially large counts. The minimum rally objective of 3 boxes across the 1055 line giving 1075 or so has been met. The problem is the counts across 1062.1 which look bullish and call for a large move. Since they could also be continuation counts for further decline, we will wait for this small trading range to be exited with signs and wonders, volume.
I did not follow my own analysis and play this because I felt the bonds would move in the opposite direction of stocks. I was wrong and the Wyckoff analysis was correct.
Not much strength here.
