Who this entry is for — The bearish counterpart to LPS: the «energy-less» rally after a SOW — the last chance to enter short before markdown.
Source: Wyckoff Analytics; Wyckoff Schematics (Pruden, MTA 2006).
Prerequisites
Sign of Weakness (SOW), Last Point of Support (LPS) (symmetric).
Definition
In plain terms — After a strong drop (SOW), the stock bounces a little but without conviction — few buyers, plenty of supply left. It is the last comfortable point to sell short.
The Last Point of Supply (LPSY) is a weak rally on narrow spread and reduced volume, after a support test on SOW.
- Exhaustion of demand
- Final waves of distribution by large operators
- Can appear more than once in phase D
- «Last» = the last favourable point before markdown (phase E)
Technical reading
| Feature | «Clean» LPSY | Weak (ambiguous) LPSY |
|---|---|---|
| Volume | Low vs SOW | High |
| Spread | Narrow | Wide |
| High | Below resistance / ex support | New high |
| Follow-up | New decline | Sideways |
Example — SOW carries price to €72. Bounce to €75 on volume −50% vs the SOW, failing to clear the creek. LPSY — short with a stop at €76.50.
LPSY vs LPS (symmetry)
| LPS (accumulation) | LPSY (distribution) | |
|---|---|---|
| After | SOS | SOW |
| Bias | Long / add | Short / add |
| Rally/reaction volume | Low on pullback | Low on bounce |
| Stop | Below LPS | Above LPSY |
Operational use
| Action | When |
|---|---|
| Short entry | LPSY in phase D, weak market |
| Add short | Subsequent LPSY in markdown |
| Long exit | Any LPSY in distribution |
| Stop | Above the LPSY high |
Integration with the five steps: LPSY + weak index = short timing.
Summary card
| Abbr. | LPSY |
| Phase | D (distribution) |
| Pair | SOW → LPSY |
| Symmetric | LPS |