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Re: [VSA] Volume Spread Analysis Part II
Dow is showing weakness after the FED cut rates, this shows that the Specialist's took the opportunity to distribute stock they had bought from the public at the lows at around 11800 level, rarely at a loss to themselves of course.
Point A, up bar with the high lower than the previous high, and look at the volume! remember that markets do not like high volume on upbars, unless tested immediately.
Point B, there is a test and all looks rosy and looking strong at this point.
C, A down bar after a test, this is weakness, well this bar says it all, I can now look forward to lower prices, look for a 'No demand' into the 12600 level to confirm the downtrend. And don't forget to post your short trades for all to study.
Regards S
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