Remembrance Day. Tuesday, 11 November, 2014, page-5

So many are looking for another pull back in the US, or perhaps a deeper one,

we just had a pullback of sorts...... albeit relatively shallow,
and the result of that pullback is that most of the weak hands have sold out, leaving a lack of selling pressure across the market.

Since October 15th, the S&P has rallied ~220 points.
The largest daily sell-off over the last three weeks has been ~26 points,
while the up-move has been a virtual one-way street.

That said, the weekly spreads have been slowly narrowing (~93, ~89, ~72, and ~38 points)

The bearish interpretation says the up-move is tiring and losing momentum - suggesting an upthrust of the late September highs.


The bullish story says there is very little supply present and prices will continue to grind higher.


.
David Weis quoted Wyckoff yesterday and wrote,


“The market is like a slowly revolving wheel: Whether the wheel will continue to revolve in the same direction, stand still or reverse depends entirely upon the forces which come in contact with its hub and tread.”
(Richard D Wyckoff - Studies in Tape Reading).


The dominant force right now is demand - slow, unrelenting demand.