A Sign of Weakness (SOW) and a Last Point of Supply (LPSY) are two principles that work together. One is the action and the other is the test. The Last Point of Supply is the test of a Sign of Weakness. How do you know if you have a valid test? Normally you would like to see the LPSY stop in the area of the ½ way point of the Sign of Weakness. There should be evidence of decreasing demand as the rally progresses. This can be indicated by decreased spread and decreased volume, and as mentioned, possibly a turning point near the ½ way point of the previous reaction (the SOW) although this is less important. If you are able to confirm the lack of demand on the LPSY, you can enter a short position near the turning point. This turning point will often be in the area of the Preliminary Supply or the Buying Climax of previous bull move. Measurements on the Point and Figure Chart are taken from the LPSY to the Buying Climax, and possibly as far over as to the Preliminary Supply. Make sure you use the idea of phases and objective ranges when you calculate your objective.