Early this morning, the S&Ps reached up over the August 31st high (discussed in last night’s post) and failed to hold its gains. The market had an upthrust. Given the supply we have been talking about for the past many weeks, that wasn’t surprising. As is typical with an upthrust, we saw a trend day down today.
I love days like this. They offer many trading opportunities off the intraday time frames. Trades to the short side (there was absolutely no valid reason to take long trades today) occurred on small pullbacks and volume signals off the Weis Wave shortly after the open, again around 10:40 & 11:40; more shorts at about 1:30, 3:20, and 3:45. When a trend day sets up like today, we typically see good, one-sided trading into the close.
We cover trading upthrusts and pullbacks in a trend in Chart Reading Mastery, which is an 8-week course on reading the market by its own actions with classic trade setups from the Wyckoff Method that will be starting next week. If you had questions about how to trade the events of today, you might want to check it out. You can learn more here:
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