Dow 8 Nov 2012

Today it was not obvious at all what the market was to do, as after yesterday’s down-day, the market seemed to go sideways until market open.  Upon the market open therefore, it was unclear but I sat and followed each timeframe.  Then at 15.20 my opportunity arose, just what I am looking for – no demand in the 10 minute timeframe.  See chart.  The market had opened at 14.30 only to go up on high volume, but it is important to be aware that this volume is high compared to previous volume because the previous volume is globex volume, so will be low.  After going up there was a top reversal, seen at Point A, followed by no demand (up-bar on volume less than the previous two) at Point B – this indicates that there is little interest in higher prices from the professional money.  It tried to go up, but the low volume (relative to the previous two bars) is low – coloured in pink by the software.  This principle is confirmation of the weakness seen previous (high volume on up-bar followed by a top reversal).  The market immediately reacts with a nice long down-bar.  I sold at Point B and took 20 pips profit.