BarroMetrics Views; Wyckoff and the S&P
A couple of readers asked for a Wyckoff Analysis on the S&P in lieu of the Wolfe Wave analysis that I did the other day. Here it is.
Figure 1 shows the move down in the 81-minute chart (day session only) from 1371 in the 1252 with Wyckoff Notations; Figure 2 shows the Daily Chart of the same move with the retracement levels drawn in.
Note that although there were two lows prior to the low I marked ‘Preliminary Point of Support’ in Figure 1, I did not consider them as candidates for the Preliminary Point of Support until the E-mini reached the 78.6% retracement zone. This is what I meant by context in the post, “Context and Trading“.
The Preliminary Point of Support is usually the Penultimate Low and the Selling Climax usually marks the end of down move and the beginning of a congestion phase. Normally, the volume on the rally following a Climax is greater than the rally following the Preliminary Point of Support. We did not see that in this case. Hence my view in Figure 1 that we are likely to see a retest of the 1250s.
FIGURE 1 E-mini 81-minute Day Session
FIGURE 2 E-Mini Daily Day Session
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