november short term trading part 2, page-41

Hi jgunter,

Today we had a very narrow spread (5 cents) down bar, on lower than average volume, close in the middle.

To me this bar shows, No Supply, which means No Selling Pressure, think of it like a test of supply.

Narrow spread down bars can also be seen as accumulation bars, but todays lower volume would say that IF that was the case they didnt get much stock.

If we did have test of supply today, it would be confirmed with higher prices on Monday.

Another way of looking at it, is that if the pro's were not selling today (when the market was sharply lower) then it stands to reason they must be bullish.

Just waiting for the right market conditions, if they have their sacks full that is (to me this is the question, have they been able to accumulate enough stock yet ??).

have to wait and see.

cheers