Last week I mentioned that the 2480 level was critical. We closed at a new high for 2017 at Point A, which was Monday’s trading day. This bar was on No Demand, so it was crucial to wait for the next bar to form.
The news came out on Tuesday about North Korea, and we have seen the S&P500 get knocked down. Tuesdays bar Point B would have caught every trader by surprise. We saw the S&P500 get marked up and it was slammed down and closed on the lows. We had a VSA principle a Trap Up Move which is a significant sign of weakness.
The next two days were down days, with a stopping volume appearing on the 1-hour chart which seems to have stopped the market in its tracks.
Friday’s bar was a lacklustre attempt at a rally as it has met with resistance around our trigger number of 2446. The conflict with North Korea seems to have quietened down a little, and if we see a surprise resolution, then we’ll see the S&P500 rebound. 2446 is a critical level once again. If we pass this level, then we’ll retest the highs. If the conflict remains with North Korea, expect lower prices around 2415-2400.
Have an excellent trading day
Professional Investor and VSA Expert
Author of Supercharge Your Trading & Investment Account Using Wyckoff / Volume Spread Analysis