We've been expecting this sell off for the past few weeks, and have been discussing it in previous blog posts and in Deep Practice. We've had two strong trend days to the downside over the past two trading days, breaking down below the 1395 pre-election support level. Since we are now oversold, we may see the market try to hold in this area tomorrow. If it does and that … [Read more...]
More Market Weakness Expected
As we anticipated last week (see post here), the market weakened, breaking the support around the 1420 level. Although it tried to hold on Monday, the buyers failed to rally off of support and sellers took the market down decisively on Tuesday. The remainder of the week saw the market slide lower down to the 1394 level painted on the closing days of summer here in the … [Read more...]
US Stock Market Weakens. Next Moves.
Friday saw some strong selling come into the US Stock market. This was not constructive for the market. Does it mean we are now about to go lower? Based on the current picture of supply and demand, I think the odds favor lower prices. Let's take a good look at the daily bar chart of the S&P e-mini futures market (ES) since early September, and then apply the Weis Wave … [Read more...]
Anatomy of a Trade
Patience was the watchword for today, as it so often is. We have been in a nice rally the past two days after a good selloff. So, we can expect that the market would pull back at some point soon. That point happened today. What I would like to show in this post is how to integrate market structure and trade setup triggers. We start with the 9,000 Tick Chart, a chart that … [Read more...]
