Strength Continues

On Fri­day, the mar­ket closed lower than the pre­vi­ous close for the first time in eight days.  It is unusual for the mar­ket to paint so many up closes in a row.  Nev­er­the­less, the mar­ket con­tin­ues to show strength.

Although Fri­day dipped lower than pre­vi­ous recent pull­backs, the mar­ket rebounded.  We can see on the daily chart that price action con­tin­ues to remain strong, though vol­ume is less than what we would expect on a rally like this.

Still Bull­ish — so far!

The 50,000 tick chart with 3-point rever­sals shows the Weis Wave remain­ing bull­ish, though demand may be tir­ing — at least on recent up waves.  So, cau­tion is recommended.

We are approach­ing 1300 — a very big, round num­ber.  Be care­ful here, though I sense that a rally up to 1300 will travel far­ther, per­haps to 1315, or there­abouts.  But this is just a sense, and not based on mar­ket action.  Best bet: Watch the Weis Wave — it is the best indi­ca­tor of sup­ply and demand that I know.  If a pull­back off of 1300 pro­duces big vol­ume on the reac­tion down, look to be a short player.  Oth­er­wise, look for the same around the 1315 level.