After being shut down for two days, the US Stock market reopened yesterday, despite the hurricane damage and enormous cleanup to be done in and around Wall Street in lower Manhattan.
As I mentioned last week, there is weakness in the market and that played out yesterday. The market rallied up to and failed to hold the 1416.75 high put in last Thursday (October 25). Note the relatively light volume on the rally. This is an early clue that the market will not be able to penetrate and hold a trading range high.
It upthrusted this level and immediately started trading lower. Volume to the downside came in on the Weis Wave, and we see selling easily overcame the light demand.
Upthrusts occur two more times in yesterday’s US morning session in the S&Ps giving great trade entry locations. Note how the Weis Wave gave clear indications that selling was dominate all morning long, right into the noon hour. Straightforward trend channels, properly drawn, provide the framework against which you manage your trades.
Next week, I will be showing exactly how to trade upthrusts and how to use the Weis Wave in your trading. We will look at bar-by-bar considerations and how to frame the structure of the market for trade initiation, management and exit. We will also look at springs, other Wyckoff trade setups, and a whole lot more over two 3+ hour sessions. This is the same material I presented in Southeast Asia and Australia. It was very well-received, and many traders who couldn’t attend have asked that I do it as a webinar. You can learn more here: Next Week’s Webinar
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