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PureBytes Links
Trading Reference Links
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Naz Daily:
http://tinyurl.com/ex0d
Naz Weekly:
http://tinyurl.com/ex0f
SOX:
http://tinyurl.com/ex0h
These charts should be easier to view.
This week: Mon 6/16 a wide spread closing on the high on slightly
higher vol that completely reversed the Fri down bar and closed above
6/05. Note that his bar really doesn't close much above the previous
bar's high. It spends a lot of effort just making up lost ground.
However this still looks positive but Tues there is no follow-thru; a
very narrow spread, a hammer, on higher vol, which was unable to
reach the previous 6/06 high. So that's relatively strong vol which
accomplishes little - effort vs result. Wyckoff would have called Mon
a sign of strength, but he would also say that if such a seemingly
positive sign does not produce results *soon* it then becomes
the opposite, a possible sign of weakness. Obviously this is the
recipe for every double-top or H&S or triangle formation.
Wed an up day on higher vol, the highest in 8 days since the
(possible) buying climax, and a wide spread but the close is barely
above Tue's high. However price is now at the previous high and the
last 3 bars have closed near their tops. So one asked: Will we get a
breakout here?
Nope. Several interesting things on Thurs: A wide spread closing on
the low w/slightly lower vol which upthrusts the previous high and
closes right at the bottom of what's looking like a bear flag (green
lines). Note how price is also unable to get back to even near that
upper channel supply line (yellow) and closes below that middle
channel line.
Wyckoff defines a Trading Range as a Buying Climax, Automatic
Reaction, Secondary Test. I've labled the present trading range,
defined from 1685 to 1600. The ST has upthrust the BC and reversed
and did so on substantially lower vol than that of the actual climax.
Unless there is a quick recovery this scenario would seem to indicate
weakness and further consolidation if not an even more substantive
reaction before any kind of rally can resume.
Fri a narrow spread on lower vol which closed right at 50% of the
range (dashed line) and dropped out of the flag pattern.
On the weekly this is the 3rd topping tail in a row, the close right
near the low. Very negative.
The SOX, which has been outperforming the S&P during this rally, is
now looking pretty weak and its RS line appears to be faltering.
Harold
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