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Strategies & Market Trends : Timing the Trade the Wyckoff Way -- Ignore unavailable to you. Want to Upgrade?

To: coferspeculator who wrote (52)	5/1/2004 5:25:22 PM
From: coferspeculator	Respond to of 14340

Friday, the market experienced an intra-day failure to the upside as it closed at the bottom of a narrower spread on reduced volume in a nearly oversold position. While today's action indicated that supply was still in control the fact that the close was near yesterdays close suggests that some demand did enter the market today. The nearly oversold condition of the market and the likely test of the years lows provides some hope for the bulls that demand will re-enter the market next week. It is probable that the market will enter an oversold situation either Monday or Tuesday unless demand enters the market during the morning or supply is withdrawn. Should this occur a rally is likely but consideration for the taking of long positions should be looked upon with hesitation. If positions are taken for short term trades then very tight stops should be considered. The strength of this possible rally will provide the answers as to whether a re-test of the highs of last week or a fall through the ice is likely. At the moment it appears that the latter is most likely. If the market falls through the ice early next week then waiting for a back up is suggested. The market will then enter an oversold condition and the rally back will offer a better position for taking the trade as well as offer better evidence as to the character of the market for the intermediate term.