We had a bit of an unusual day on Friday. Partly this was due to the jobs report. In any event, it was not constructive for the US Stock market.
On Friday morning before the US session started, the market was holding right around yesterday’s (Thursday’s) high. It told us that the market wanted to go higher. In a chart I posted to some the the FaceBook trading pages (chart posted here, as well), I highlighted the fact that the market was holding and that I was anticipating that the market would push through the 1424 resistance level, which it did after a brief shakeout from what I assume to be the HFT algos, since it happened so quickly.
What I was not anticipating was that the market would falter around the 1430 level. Although we had some shortening of the thrust, it was not really apparent that the market wanted to sell off. Fortunately, the wave down on the Weis Wave gave us a ‘heads-up’ that the market was weak. From that point, it was trading from the short side, with trades setting up on the Weis wave and the 3-10.
Since the market was unable to hold the 1424-1416.50 level, it looks like it is putting in a lower high with more downside for the coming week. A weak intraday rally back up around the 1416-1420 level would offer a good short opportunity. Assess the price and volume action for weakness if it does rally to that level. Failure here or a break below Friday’s low would push down to the 1394.50 pivot, and likely lower.
On Tuesday, I will be presenting the first of a two-part webinar of material that I did in Southeast Asia and Australia in September. We will cover bar-by-bar analysis, four trade setups, the use of the Weis Wave, swing and day-trading applications., and more. As a bonus, I’ll go through the details of an actual trade taken and held for two and one-half days while in Australia that covers entry, trade management, psychology and exit. Come join us for an information-packed webinar. More details can be read here: Asia-Pacific Chart Reading Masterclass-International Road Show.
Dr Gary’s presentation at the RoadShow was awesome. As we are fortunate enough to have Dr Gary answer our requests for a replay it is well worth attending!!! There is lots to get out of this presentation.