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The Stock Market Update: February 2, 2014 © David H. Weis

The S&P 500 index remained weak last week, falling further from previous lows with higher trading volumes. The author analyzes whether this reflects buyers accumulating or further weakness to come. An unusual bearish wave pattern also occurred in natural gas futures on Friday.

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156 views2 pages

The Stock Market Update: February 2, 2014 © David H. Weis

The S&P 500 index remained weak last week, falling further from previous lows with higher trading volumes. The author analyzes whether this reflects buyers accumulating or further weakness to come. An unusual bearish wave pattern also occurred in natural gas futures on Friday.

Uploaded by

Anonymous L77eD5uo
Copyright
© Attribution Non-Commercial (BY-NC)
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THE STOCK MARKET UPDATE

David H. Weis

February 2, 2014

Last week the S&P remained under pressure with lower lows on Monday, Wednesday, and Friday. Despite the persistent weakness, the downward thrust shortened. I cant help pointing out the difference between the price/volume behavior of the last two weeks. Two weeks ago the range was 64 points on 6.4 million volume while last week was 40 points on 11.5 million volume. Two weeks ago, the S&P lost 52.25 points; it closed 5.5 points lower last week. The bullish argument says last weeks large effort and small reward reflect accumulation. The bearish argument says the sellers are absorbing through the buying prior to a breakdown below the December low at 1754. If there is little or no downward follow through tomorrow, I expect the S&P will rise into the 1802-1817 range. See natural gas wave study on page 2.

www.WeisOnWyckoff.com

[email protected]

Tel 617.489.9155

THE STOCK MARKET UPDATE


David H. Weis

February 2, 2014

An unusual wave setup occurred on Friday in natural gas. After making a one-tick upthrust on 1600 volume, the market sold off on 1200 contracts. This was not overly large volume and did not appear threatening. It was the upwave on 2100 volume that stood out as bearish. Not only was there large effort with little reward, the angle of the upwave spoke loudly about the markets inability to make headway. A second chance to get short was provided by the rebound that tested the breakdown. Notice the weak position of the closes in the circled area. This rally tested the area where prices accelerated lower.

www.WeisOnWyckoff.com

[email protected]

Tel 617.489.9155

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