It was another good day of trading in the S&Ps. You might not know it from the daily chart, as the dailies are contracting. But the intraday has been quite lively.
Today’s action was pretty classic Wyckoff trading. I am showing the full Globex session on the 3,000 tick chart. I like using tick charts because they capture the overnight moves nicely and even during the US session, they provide a slightly different look than the normal time-based charts. I always have a 9 k tick and a 3 k tick charts along with a 5-minute chart on the screen.
A – Price rejects lower prices and rallies back up above the Globex swing low.
B – A higher swing high with good momentum, a minor reaction, and a hidden test at support. Everything is pointing to higher prices here.
C – A spring that rallies back to the overnight high then tests. The market is in an absorption mode for over an hour.
D – We make new highs on the day as promised by the spring & absorption.
E – A well-behaved reaction becomes oversold at support.
F – The initial rally out of the oversold position at E looked strong enough to at lease retest the highs at D. But, as Wyckoff wrote, we must always be watching for a setback. Instead of rallying higher, the market stalled at 1324 and then had an upthrust.
Any one of these trades made several points. They are all taught in detail in the Chart Reading Mastery Course, which starts at the end of March. We run for 8 weeks with solid teaching of the Wyckoff method each week. All sessions are recorded and you have access to them for a year. I’ll review and comment on charts you submit as part of the course. We have a "preview" webinar next week on Wednesday, March 16. Join us by clicking here to register: Free Webinar Chart Reading Mastery
As mentioned above, although the daytrading has been good, the higher time frames are coiling into an equilibrium level. The daily chart shows this clearly. Note that we painted an inside day today. Watch for volatility and activity to pick up near term.
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