I am back from a two-week trip to England and Wales. The seminar we did at Heathrow was one of the best we ever did. A lot of great information was conveyed by Tom Williams, Gavin Holmes, Phillip Friston and me. The questions and interactions with the participants was even better, drawing out nuances and insights. We even got to talk a bit about the psychology of trading when Rita Offen, a prodigy of Tom’s, talked about what drew her to trading and how hard she worked at it. All-in-all, a terrific experience. It looks like I’ll be joining Gavin & company in September for the Sidney and Asian seminars, too!
I spent the next fortnight with Tom, Gavin and his brother Darren. We traded, talked Wyckoff and VSA, and took time out to visit friends in Wales and other areas in Southern England. Very busy and very productive. I loved it. I even learned to speak a little ‘proper’ English!
Now, it’s back to the markets and writing my book. Let’s take a quick look at the US stock market and see where we are likely headed.
US Stock Market
On Thursday, the market became oversold in the trend channel (45,000 Tick Chart) and found support along the 1328 axis (Daily Chart). Note how the Weis Wave shows the supply drying up at the bottom – nice. The up waves and wave volume increase showing demand has overcome supply. This is the change in behavior from bearish to bullish we look for.
The market is likely to hit temporary resistance at the 1356 area if it continues to this level in the US morning session on Monday. Watch this area carefully. Watch also the area from about 1345 to 1340. A pullback into this level should set up a buy opportunity as long as the price and volume act appropriately. A day or two in this area will expand the cause and can set the stage for a rally above the 1375 level a bit later. I’ll be watching this closely.
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