On Thursday last week, we discussed in detail in Deep Practice why the market was poised to rally and where the likely termination of that rally would be. We anticipated this rally. In fact, there was ample evidence of buying beginning a little over two weeks ago. We went deep into those details, including:
- the overall evidence of accumulation
- the overall condition of the market at that point
- the Spring
- the test of the Spring, and
- the first phase projection of the point & figure chart.
All this was discussed in the in the Deep Practice session last week (June 23).
This week, starting on Monday, the rally began in earnest. Buyers stepped in and we have had three solid days of upside movement. We are hitting a bit of resistance at the 1300+ level, and so we see the range shorten a bit on higher volume, but the immediate trend is up. I will be watching for more resistance and supply to enter around the 1320 level. For various reasons, it is a logical location for selling to materialize.
I still view the intermediate term market with a bearish tone and see the mid-March lows being tested (at least). Despite this overall bias, I always strive to let the market tell me what it will do next and I strive to take the market one swing at a time.
If you would like to keep on top of turns in the market and learn the art of chart reading to determine how the market will next run by its own actions, come join us in Deep Practice. More information and links to register can be found here: Deep Practice
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