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Wyckoff

Major US Indexes Stage 4 Breakdown Attempt Rejected With a Potential Wyckoff Spring Forming - Day 1

Spring / Undercut and Rally moves were the theme of the day as the US stocks markets opened strongly lower with a major weekly Stage 4 breakdown attempt at the open, which was rejected as the day progressed with strong demand pushing the major indexes (i.e. the S&P 500 and Nasdaq) back into their Stage 3 ranges. So it marks a potential Day 1 of Wyckoff Spring attempt in Phase C of the short term base structure that has been forming since the January 24th Selling Climax (SC) began to define the range.
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Major Indexes Testing the Stage 4 Breakdown Level

The major indexes all tested their lower ends of their bases today, the Nasdaq composite closing below the Jan 24th Selling Climax (SC) level, and so there is a possibility that there could be a Spring attempt. But current geopolitical events continue to add volatility into the mix, and so risk of a broad Stage 4 decline continues to increase. Although you could argue from the market breadth data alone that we are already in Stage 4...
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US Stocks Watchlist - 22 February 2022

The S&P 500 and Nasdaq 100 both pushed down towards their recent lows that were put in on the 24th January on the local Selling Climax (SC) and are currently making a potential Secondary Test (ST) of that low. So how well defended it is will give further clues to the market condition. i.e. do they form a higher low and push back higher in their Stage 3 ranges, or do they undercut and rebound, but form a Sign of Weakness (SOW), or breakdown completely and move into a major Stage 4 decline.
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S&P 500, Nasdaq Composite and Russell 2000

The major Indexes had a weak final few days of last week and the S&P 500 and Nasdaq Composite both moved back into the lower half the recent range that they have been developing, with the Russell 2000 showing some near term relative strength. But in a weaker overall position as the Russell 2000 is the only major index in Stage 4, while the S&P 500 and Nasdaq Composite and NYSE all remain in Stage 3 currently, with attempts to form a near term base structure, of which they are all in Phase B - the testing phase...
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