Thursday, January 16, was a confined trading day on light volume. Traders would be looking for upside development after this potential test (see daily chart at A). Had the test been immediately successful, new all-time highs in the S&Ps would have occurred.
But that didn’t happen. After dropping briefly under Thursday’s low (see intraday chart at B) and generating a Wyckoff Spring, the market started to rally. Unfortunately for the bulls, the rally ran out of steam as we can readily see by the Weiss Wave. On a lack of demand, the market was a sell on the UpThrust at C and–if you missed that, then another Upthrust opportunity occurred at D. Sales should have been covered once the market became oversold.
Free Webinar Tomorrow
We are holding a free webinar tomorrow to teach you a little about how to read a market with only price and volume, bar-by-bar. We still have additional slots, although the response has been pretty strong and we may actually get filled. So, if you would like to join us be sure to register so you don’t miss out. Time is Sunday, January 19 (that’s tomorrow!) at 4:00 New York Time. Register at the link below. See you tomorrow!
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