- Weis Wave & S&Ps
Interesting day in the ES yesterday. From the daily chart, we were anticipating follow-through from last Friday’s drive down. The market found support just below the 1127 level, however, and rallied closing the day firmly. You can see on the daily chart that this has been a level were buyers have stepped in (green arrows) over the past two weeks or so.
You can also see on the 27000 Tick Chart with Weis Wave that the last two rallies have brought out volume. These are the two green volume spikes highlighted by the green arrows. Downside volume (red volume spikes) have been diminishing, especially on the drive down last Friday. This gave us the heads-up that buyers could step back in if the selling didn’t pick up at this level. I use the Weis Wave in this manner to help me see into the structure of the market.
Note however, that yesterday, buying was not particularly forceful (again, as measured by the Weis Wave). We will need to see buyers step up their activity soon to bring prices back up to the top (1200 – 1225) of the trading range that has formed; otherwise, we may see a hinge or apex form. Jeff – an excellent Wyckoff student – pointed this possibility out over the weekend. He saw it forming in the SPY.
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