Was it a Wyckoff Spring? Was it a Wyckoff Spring? That was the discussion in yesterday's post. Because of the combination of Wyckoff principles that were setting up in the structure of the market, I expressed doubt that yesterday's daily trading action in the S&P e-minis represented a sound Wyckoff Spring. Those doubts were confirmed today in spades as you can see on the … [Read more...]
Time to be wary
Although the S&Ps made new all-time highs last week, the Dow did not. Wyckoff talked extensively about comparative strength and comparative weakness. When related markets fail to make new highs together, you need to sit up and take notice. We saw this in January when the Nasdaq made new highs, but the S&Ps and Dow did not (see A on the chart). This comparative … [Read more...]
The Damage
We've been discussing the likelihood of a significant pullback in Deep Practice for the past several weeks. The monthly chart of the S&P cash market shows an overbought position in the trend channel. Because it is occurring on the monthly chart, the odds of a significant move becomes more likely. The market sell-off that began last Thursday is the beginning of the monthly … [Read more...]
Sell Off in US Stock Market
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...]
