On Friday, the market closed lower than the previous close for the first time in eight days. It is unusual for the market to paint so many up closes in a row. Nevertheless, the market continues to show strength.
Although Friday dipped lower than previous recent pullbacks, the market rebounded. We can see on the daily chart that price action continues to remain strong, though volume is less than what we would expect on a rally like this.
The 50,000 tick chart with 3-point reversals shows the Weis Wave remaining bullish, though demand may be tiring — at least on recent up waves. So, caution is recommended.
We are approaching 1300 – a very big, round number. Be careful here, though I sense that a rally up to 1300 will travel farther, perhaps to 1315, or thereabouts. But this is just a sense, and not based on market action. Best bet: Watch the Weis Wave – it is the best indicator of supply and demand that I know. If a pullback off of 1300 produces big volume on the reaction down, look to be a short player. Otherwise, look for the same around the 1315 level.
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