A Perfect Wyckoff Retest

The futures are up very strong this morning.  If we close near the highs today or show a consistently strong day with no late day sell off then I am going to have to conclude that the three day correction we just had was only a classsic Wyckoff retest of new support. 

If that is the case then this action is very bullish and points to possible continuation higher.  A strong reaction higher from new support is bullish type action.

I am closing out the BOT short signal and switching to neutral on the premise that today will prove this support area and then possible lead to continuation.

There is always the chance that today’s rally will be a gap and crap (strong rally with late end of day hard sell off) but will just have to wait and see.

If the market can close strongly higher today it will go a long way towards invalidating the weekly gravestone doji I was referring to yesterday.

5 thoughts on “A Perfect Wyckoff Retest”

  1. Back in RAX and RBCN. There is an old expression but still true today.
    “DON’T FIGHT THE TAPE!!”

    TRUE VERY TRUE!!

    At best we see the future “through a glass darkly”

    Perhaps Heisenberg had it right with his uncertainty principle. The more we try to figure it out the more it morphs. Or more precisely one property is measured, the less precisely the other can be measured.
    The more precisely we try to measure form the more the substance changes.
    Or so it would seem.

  2. This bear is about to throw it in (the towel). EW guy at elliotthound blog says no way this goes over 10850 (Dow) but I think he may be as absolutely wrong as R. Rosen who is calling for gold to plunge. By the way the EW guy today also is calling the gold top today!

  3. In the ole days there was the nifty Fifty. nowadays, there is the nifty 5 or so – – Aapl, Amzn, Nflx, Goog

    To me this seems extremely dangerous. . . but that is life.

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