⚡️ Market Context
CLO is playing out a Wyckoff distribution pattern, with the UpThrust After Distribution (UTAD) phase nearly complete and the structure now awaiting confirmation of a Sign of Weakness (SOW).
📈 Chart Explanation
With UTAD almost finished, the next step is a Last Point of Supply (LPSY), which would offer better selling opportunities during a retracement move, a classic late-stage distribution sequence.
🎯 Entry Decision
A clean rejection from the highlighted zone is the confirmation needed for SOW to play out. Without that rejection, the distribution thesis remains unconfirmed and should not be acted on prematurely.
💰 Execution Plan
Wait for the rejection at the highlighted zone before treating this as a confirmed SOW setup. If price instead establishes bullish candles above the previous highs, the entire SOW theory is invalidated and requires stepping aside.
📈 Outlook
A confirmed rejection supports the SOW thesis and opens the door to a retracement move with improved selling opportunities at LPSY. A break above previous highs instead shifts the structure away from distribution entirely.
