THE STOCK MARKET UPDATE March 23, 2014

David H. Weis

Thursdays price action in the S&P was bullish and put the market in position to test its
high. The cash S&P and the March contract made new highs while the other contracts
did not. I suppose the option expiration may have had something to do with this. The
downward reversal from Fridays high looks more bearish than bullish, but with prices so
close to their highs we may yet see another rally attempt. Support between 1850-1845 may
be a tough nut to crack. Nasdaq futures had a three-bar, outside downward reversal and
closed below these lows. Well find out if it means anything tomorrow.

See YM and ES wave charts on page 2.

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

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

With the various stock index futures moving in different pathways on Friday, they
offered important clues about each others directionespecially when viewed through
the lens of wave volume. Both the Dow and S&P reached highs shortly after the opening
and experienced high-volume downwaves. The YM broke on 22.1k volume while the ES
recorded 212k volume. From this low, the YM moved above its morning high into an
upthrust position, but the S&P was much weaker. A modest amount of supply emerged
on the next downwaves in both markets, but it was the low volume on the subsequent
pullbacks (1.5k in YM & 7k in ES) that indicated demand was spent. As prices turned
down from these highs, short positions could have been established with impunity.

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