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Looking Like Re-Accumulation January 23, 2015

Posted by Tom in Thoughts.
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This price structure is looking more and more like a Re-Accumulation structure (as mentioned last week).  I should note that when I label charts with Wyckoff action points I typically do that in a “pessimistic fashion”, that is a worst case scenario.  Why?  Because of a built in risk avoidance bias.

NASDAQ

The strong bar on Thursday pretty much wiped out the possibility of this being a Distribution structure, but I’ll hold on to those labels until next week (even though I feel that is a remote concept at this point).  So, what next?  A continuation of this trading range, at least until we break out of it.  Earnings are mixed and folks remain nervous about Europe with their version of Quantitative Easing (i.e. lower interest rates & max. liquidity).

I still see a strong US $ (amazing) and government bonds (very amazing) and utilities remain popular.  Technology is hit or miss, though semiconductors are showing some positive strength.

In the chart above I note that Market Sentiment  is now “neutral” and a few shorter term trend indicators have recently turned Bullish.  We need to see a strong close above the 4810 level to confirm a range breakout, until then let’s be cautious.

Take Care and have a good week.        ………  Tom  ……….

Comments»

1. RTT - January 25, 2015

Re-Accumulations do not have UTAD. UTAD are very rare and are solid proof that a consolidation is most likely distribution,but not this time. Yes re accumulation or a stepping stone that will likely see higher prices.

Tom - January 25, 2015

That’s right, re-accumulation structures do not have UTAD’s only “tests” of support & resistance (which don’t necessarily have to be horizontal levels). But (as I mentioned) I like to label structure as worse case until they are proven . . it’s a risk avoidance thing. Kind of like of “hope for the best, but plan for the worst”. 🙂 Cheers


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