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Registered User
Joined: 3/25/2005
Posts: 67
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Just wanted to run this observation past anyone that might be more of an expert using Wyckoff's methods for interpreting price and volume action than i am ...
Looks like the retracement of the 27-28July selloff is indicating further distribution (a high volume "automatic rally"). The 28July test of the 27July low was on higher volume (bearish) and the subsequent retracement on even higher volume. Low volume on the retracement is generally a sign of weakness, but exceptional volume is more likely a sign of distribution than had the volume been moderate (which is more indicative of indecision).
I'm thinking that a low volume failed test of 57.92 (see 2-day) would be an even better (lower risk) short setup than we have currently.
Furthermore, MS and TSV in negative divergence. HUM is a relatively strong member of a group that has taken a licking the last few days.
JG
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Registered User
Joined: 11/1/2005
Posts: 240
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the sell off looks like a side ways movement developing if it dosen't make a effort to get above the recent resistence and starting in jan. the 7/27 vol has some up vol, it closed in the center of the price. the next day it closed off the bottom on increaseing vol. the price spread on increaseing vol was a sign of strength. at this point a support trend line can be added from the may low. had I bought it around 51, I would be holding to see the next effort. useing a day chart it could be watched for a trade or wait for more developement. the p&f chart has more up side to this one.
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Registered User
Joined: 3/25/2005
Posts: 67
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Thanks jim, but the close on 02Aug already answered my question and invalidated my interpretation.
JG
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Registered User
Joined: 11/1/2005
Posts: 240
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John,
I had to fess up to having read Wyckoff.
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