Replies to post #38209 on The TradingEdge

[jxyzobrien]

volume maybe the turning point
todays volume is real weak. that can not continue. shadow keeps
looking for shorts and he is too early.

tics n breadth for the first time are looking weak. this or yesterdays high is a good location to exit longs

[jxyzobrien]

yesterdays afternoon high
then they dumped
as expected this caught sleeping bulls off guard

[jxyzobrien]

Market profile steals from Wyckoff still supply and demand
There is really nothing new in technical analysis just different
waves to express and interpret. Wyckoff was around in the 1930's
and his stuff still works.

Wyckoff based everything on supply and demand. Market profile
fills in the blanks and uses Wyckoff.

So when markets have break outs there is no overhead supply
(which causes resistance and areas of congestion like a bunch of
cars in bumper to bumper traffic) and so markets zoom up.

Now when markets correct they come back to low volume areas
then the market attempts to return to value area where there is
big volume.

Bollinger called it reversion to the mean (return to median
prices). Prices become overvalued fairly value then undervalued.

So we are headed to spx 2200. The market will then be undervalued and begin the move to fairly valued then overvalued again