The day after a strong day down like we had on Friday tends to see consolidation and range bound trading. This morning, after trading sideways for about an hour (A), it was clear the sellers were unable to take the market lower. A move off the lows followed by a test gave the first trade of the day.
Any morning rally after a strong day down is usually short-lived. The Weis Wave gave a signal of no demand (red arrow) in the area we saw large activity on Friday afternoon.
At B, I tried for an UT, but the market absorbed here instead for a small loss. The subsequent rally ran to an overbought level.
For tomorrow, I’ll be watching the trading around today’s high carefully. A lower low or UT will set up a short.
Also tomorrow, I will be presenting a webinar on the Wyckoff Method, including reading charts bar-by-bar, fundamental Wyckoff trade setups, the use of the Weis Wave, and applications of Wyckoff in swing trading and day trading. See the details at this link: Chart Reading Masterclass-International Road Show Webinar
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