Morning Report – January 16th, 2014
The COMP gapped open yesterday and never seemed looked back. The daily range of the candle was narrow compared to the previous day, and volume was heavier.
If I look at the price action using Wyckoff’s perspective, the effort was relatively great compared to the prior day, but the result was not as great. On Tuesday the volume was 1,949,690 shares and the opening price compared to the closing price moved up 1.29%. Yesterday volume was heavier at 2,020,690 shares and the open to close move was .44%. This means more energy (volume) was expended, for an intraday %Close/Open which was 1/3 the prior days. This is not the % close to close price which was .76%, but the prior day’s close to close was 1.69% on less volume.
This means that more energy (volume) was expended for a smaller move in the COMP. Although the gap appeared to be very bullish, there was plenty of selling taking place or the % move for the day would have been greater. Read full report