Hi
now i will continously analyze an post the progress of SPY ..
starting with the 5min chart of SPY
we are in a steady upmove . and to mee this looks like the start of re accumulation . as we ran into supply earlier
and as the SM withdrew from trading price made no real advance.. so there is no demand from the public either..
so supply and demand from the weak holders is mostly in equibilirium .. wich measn the SM has to jump in and create
a cause wich is in favour of there position ... so they have to stir up the dullness...
at the top of the channel...
on the orange horizontal line labled as
Absorbtion
we have
1. a average spread down bar on very high volume closing near its lows. but right at a previous support area...
2. a wide spread down bar wich rallied above bar 1 and closes nearly at the same level as bar 1 on slightly lower volume then bar1 but still high... as we have whitnessed two high volume down bars but with no real progress to the down side.. someone is stopping it from falling lower..
3. this wide spread down bar . actually falls below the former support area.. but falls of volume . and closes at its highs... so there is demand.. and price holds the level.. for the time beeing..
4. again high volume on an avergae down bar .. with its closes at the lows.. but above bars 1,2,3..
at the test area of supply .. we se that spreads get narrower . price stalls.. so demand and supply are in equibilirium.. here.. an indication for the SM .. to shake on the tree.. to cause and imbalance.. wich is in there favour... ie. removing supply .. and creating demand..
so they start a shakeout
on bar 5 wide spread down bar on increased volume .. price reaches the level of previous absorbtion
.. here we could say that the SM is buying into the down bars to prevent a panicky situation wich they couldnt control anymore... so they will sell back into the technical rallie.. to make it a kinda like soft shakeout...
then we whitness a climactic action on bar 6 with a bar on high volume closing well of the lows...
supply gets absorbed..
we rallie back to the lower channel line.. as bar 7 on small spread but high volume shows .. that
someone is buying here again
bar 8 is a retest of the climactic action .. wich closes of the lows.. so a succesfull retest of the climactic action..
then a rallie back into the channel unfolds .. as bar 9 on high volume closing on its lows.. shows supply swamps the market.. but with th next bar beeing an upbar.. someone absorbed that supply...
with bar 9 beeing that high in volume .. we can come to the conclusion that alot off weak bull have thrown in there towell creating weak supply wich was absorbed by teh SM as planned... and that all on a level of previous absorbtion.... at about the same time weak
bears wich got sucked in at the shakout .. also got anixous .. as price
stalled.. and wont move further down got stopped out .. or did it manually.. adding to demand....
hence the ultra wide up bar on ultra high volume 10... well as it closes of its highs .. we can say that supply hits the market here.. again...
will be interresting to see .. the reaction after that bar...