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

To: coferspeculator who wrote (181)	7/22/2004 5:10:15 PM
From: coferspeculator	Read Replies (1) \| Respond to of 14340

Today the market had an intra-day failure to the downside and finished near the highs of the day with a reduced spread on lower volume. Today's intra-day failure occurred as the market entered an oversold condition and was the result of the meeting of supply. As the market approached the lows of the trading range in the morning, speculators demand entered the market providing momentum to the upside. This volume off the bottom offers hope to the bulls that the trading range will continue. The high volume for the day suggests that if this case is to be made then one of two things most occur. In the first case the character of the action needs to show continued strong volume on increasing spreads with strong closes for the next few day. In the second case increased spreads on reduced volumes with closes near the highs would offer positive action. In both cases, it would be expected that a test of yesterdays lows on substantially lower volume with decreased spreads will occur. The high volume of the past two days shows that supply is still very evident. The amount of supply that has occurred during this third move to the support level for this year is still too high to suggest that it is exhausting itself. Additionally, the pressure from the investors needs to enter the market to the upside for any sustainable rally to take place. A rally that is followed by continued pressure to the downside from investors on high volume will likely result in a fall through the ice. The actions in the coming weeks will determine which course the market is most likely to take.