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U.S. Indices Push Higher, But For How Much Longer?

Published 10/20/2021, 03:59 PM
Updated 07/09/2023, 06:31 AM

ES Minis Daily Chart.

It’s been another day of gains for the ES Emini at the end of the trading session on Wednesday. And no doubt, longer-term investors will be relieved that bullish sentiment has returned after the roller-coaster ride of the last few weeks. But for how much longer?

While I don’t wish to rain on anyone’s parade, the volume associated with the last six days is showing a worrying trend. It’s not a positive trend either. As can clearly be seen, volume is declining, while price is ascending. This presents a clear anomaly for Wyckoff students. For such a move we should expect to see volume rising, not falling.

What also looks anomalous is the second of these candles for the price action on Oct. 14. It had a wide spread up candle, yet the volume can only be described as above average – certainly not in agreement with the effort required to propel the market through this range. In other words, Wyckoff’s third law of effort and result: the two are in disagreement. It is once again an example of benchmarking where we consider price and volume with other candles for comparison and confirmation.

Finally, we are also approaching the late August top at 4540, which triggered the reversal into September.

So, in summary, enjoy the ride higher, but the warning flags are fluttering in the strengthening breeze.

Latest comments

10-15% decline in queue
Pretty decent volume, were at the first baby steps on new decade bull market.
I keep hearing its digferent this time and they know better . Nope, its the same as 1929. They had less of a world economy and didnt expand credit as much!! But , the result should be the same … only a bigger hiThe problem is the entire world is hitting a credit limit. 1929 crash resulted from the limited credit of the time, but less of a world economic system. The geniuses have also learned to leverage more ( expand credit), but that requires investors and countries printing in unison … notice other countries tapering fast ?! That means buyers of debt will get scarce going forward. With a need for greater and greater piles of cash to buy assets , but fewer buyers of debt the yields will move skyward…without the Fed raising rates . That is already an issue . Cant generate credit without buyers… This means fewer buyers , less money to buy and asset deflation on a massive scale!! This is Japans greatest fear that we will tighten along with EU and China … that will lead them to defaul
pls ma can u help me
What was your question, again? I couldn't hear you over the loud "brrrrrr" sound of this money printer.
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