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PUBLIC: Market struggling to move up with conviction

We are nearing the close of trading on Tuesday, August 8th, 2017 and the major indices in the US market pushed strongly higher from a small gap down overnight within minutes of the opening and most made an attempt to push into new highs but fell back very hard later in the day.  One of my mentors calls this a “look above and fail.”  We had the look above prior trading ranges and then failed back below.  This may be a signal that the current “going higher” auction is coming to a close and a new auction in the downward direction (of unknown length and duration) is about to unfold.  Could last a few minutes, could last a day, could last a week.  Just thought I would share a common auction theory phenomenon I’ve had the good fortune to learn about.

Think of it this way:  if the market were truly strong right now, the push to new highs on the DOW and S&P would have stuck.  Price would have moved to the new high and closed in a new closing high price.  They didn’t.  Sometimes, what the market DOESN’T do tells you what you need to know, not what it DOES do.