S&P – Orderly Profit Taking

Added: 2026-05-27

[00:00:01][music] >> So, somebody was actively selling off that peak.

[00:00:11]And I'm looking at this and I'm saying, well, how much of a correction do we get? Small correction, I think, really makes the argument for Wyckoff's preliminary supply point. Bigger correction just, I think, could mean that we're having somewhat of a local climax, automatic reaction, range-bound.

[00:00:29]And I don't think that we can draw any more of a conclusion than that from what we see right now in Wyckoff.

[00:00:35]Yeah, and such a great comment, Bruce, about the size of the reaction. Yes, this bar right here, it shows us a change of behavior type of bar. It's the largest spread, the volume signature is the largest among the supply bars. So, naturally, we would be thinking something else is going on rather than the reactions that we had prior to that on all of the down bars. So, now we are expecting something more than this.

[00:01:05]Something more than this. Something more than this. Also, please note the duration here. The longest duration of the down bars is two. Here, we finally have three, and we are extending the distance traveled. So, that's a change.

[00:01:22]The question mark here is more about the context, as Bruce has said. Like, lots of strength behind us. So, a weak spike in something like this right away unlikely. Technically, it's less probabilistic to have an expanding bar like this, unless we have some kind of horrific news. So, as we go down, right away, even on the first bar, as we see the volume increase, that is also representative of the demand.

[00:01:55]Someone's coming in and buying at that point. What happens next?

[00:02:00]Inability of the demand to continue going up.

[00:02:03]But selling is deteriorating. The spread is decreasing. Yes, there is a commitment here suggesting still a little bit lower. But look at the same volume signature on the compressed spread, maybe like times two and a half, times two. That's a lot of demand that's coming in right away.

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