The two types of operators above described are always working against each other. The buying or selling of the “impulsive” trader tends to force prices up or down, while the scale orders of the “phlegmatic” class tend to oppose any movement. For example, let us suppose that banking interests believe conditions to be fundamentally sound and that the general trend of the market will be upward for some time to come. Orders are therefore placed by various persons to buy stocks every point down, or every half, quarter, or even eighth point down. On the other hand, the active floor traders find that, owing to some temporary unfavorable development, a following can be obtained on the bear side. They perceive the presence of scale orders, but they think stocks enough will come out on the decline to fill the scale orders and leave a balance over. To put it another way, the floating supply of stocks has become, at the moment, larger than can comfortably be tossed about from hand to hand by the in-and-out class of traders. The market must decline until a part of this floating supply is absorbed by the scale orders which underlie current prices. These conditions produce what is commonly called a “reaction.” Once this surplus floating supply of stocks is absorbed by standing orders, the market is ready to start upward again. If the general trend is upward, far less resistance will be encountered on the advance than was met on the reaction; hence prices rise to a new high level. Then profit-taking sales will be met, on limited or scale orders at various prices, and as the market advances the floating supply will gradually increase until it again becomes unwieldy and another reaction is necessary. Eventually a level is reached, or some change in conditions appears, which causes these scale buying orders to be partially or entirely withdrawn, and selling orders to be substituted on a scale up. The bull market will not go much further after this change takes place. It has now become easier to produce declines than advances. The situation is the reverse of that described above, and a bear market follows. Commonly there is a considerable period around top prices when scale buying orders are still found on declines, but profit-taking sales are also met on advances, so that the market is kept fluctuating within comparatively narrow limits for a month or more. In fact, it is likely to be kept on this level so long as public buying continues greater than public selling. This is sometimes called “distribution.” A similar period of “accumulation” often occurs after a bear market has run its course, and before any important advance appears. A close watch of transactions, or a study of continuous quotations as published in certain newspapers, often enables the experienced trader to discover when the most important of these scale orders are withdrawn or reversed.