Larry Williams: Oops Pattern
The Emini closed down 1.50 points at 1,460.50 on Wednesday. The Emini gapped down at the open, found support at 1,454.25 and then closed near the highs. That makes it 13 out of the last 16 days where the close has been above the open – wow! Is this smart money buying? The answer has to be yes, since the Emini is up over 34 points from the low around 1,426 three weeks ago. But will it continue?
The chart above shows daily Emini data with one of my 4 trend oscillators (Secret #2). This oscillator measures the difference between the opening change (yesterday’s close to today’s open) and the closing change (today’s open to today’s close). The oscillator ranges from below -100 to above +100. Today’s reading was +155, the highest reading since 14 September 2006.
This indicator shows how strong the open to close change has been during the last upswing. However, the current high reading would suggest that this pattern of higher closes may be coming to an end. This is now the second of my four trend oscillators to reach a high – the first trend oscillator to peak, the Trading Index Oscillator, closed down today.
Will we see a Larry Williams Oops pattern tomorrow (open above yesterday’s high of 1,461.75) and professional profit taking?