THE STOCK MARKET UPDATE January 23, 2014

David H. Weis

The weakness in the S&P prevailed today as the buyers were unable to roll back prices to
the unchanged level. Prices did find support once again on top of the November high at
1812.50. This may be another washout within the trading range as occurred on January
13; however, the key for tomorrow will be the amount of downward follow through that
develops. On the 1x3 point & figure chart, constructed from 30-minute closes, the
congestion across the 1843 line between January 16-22 projects a possible decline to 1792.

See soybean wave chart on page 2.

Have a nice weekend.

www.WeisOnWyckoff.com dhw@weisonwyckoff.com Tel 617.489.9155

THE STOCK MARKET UPDATE January 23, 2014
David H. Weis

The tickbar chart is most useful because it can reduce the amount of space devoted to
night trading. This is a great help when drawing channels. If configured properly, it
subdivides price movement into a more sensitive trend where high-low wave volumes
stand out with greater definition. The March soybean 400 tickbar chart demonstrates
this quite well. It begins from the mid-day low on Wednesday and shows the details of
this mornings rally to 12.96. Because the night session is confined to only 9 price bars,
the eleven hours of lateral movement in the circled area hold within the reverse trend
channel. You see how the 9:50 a.m. downwave found support on the demand line of the
channel and price peaked shortly thereafter at the top of the channel. When price fell out
of this channel, the 5000 volume signaled a distinctly bearish change in behavior. The 500
volume on the next upwave gave the classic sell signal.

www.WeisOnWyckoff.com dhw@weisonwyckoff.com Tel 617.489.9155