Same as yesterday

Click Here For Wyckoff Wave Chart 04-22-2016

Short Term:Their are no short-term opportunities to the upside.

Aggressive short-term bears could consider new positions to the downside. If the Wyckoff Wave reacts and then rallies to test these highs, lower risk opportunities should be available.

Intermediate & Long Term:

Intermediate and long-term bulls should maintain existing positions.

There are no intermediate or long term opportunities to the downside.

Market Trends:

Intra-day: Up.

Short Term: Neutral.

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed in the upper half of a narrower price spread, in a clearly overbought position relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves confirms the above. After a wide gap opening to the upside, at point C, the Wyckoff Wave reacted to point D. The reaction featured a lack of demand, with narrower price spreads to the upside and wider price spreads to the downside. In both instances volume was reduced.

The Wyckoff Wave then rallied to point E. Again this rally was on a lack of demand. Then, supply came into the market for the last 90 min. of the trading day. Per usual,, supply was not overpowering.

The Wyckoff Wave continues to rally within its intra-day up trend channel. Despite the poor market action to the upside, the Wave is putting in higher tops and higher bottoms. While it has not reached the trend channels supply line since point V, it has not reacted to the support line since point S. However, since the Wave is attempting to rally, the inability to reach the channel’s supply line is a bit more significant.

The Wyckoff Wave’s inability to sustain any kind of reaction to the downside is due to supply quickly drying up after entering the market.

Yesterday, the Wyckoff Wave reacted off point A on good supply. However, it was immediately withdrawn this morning and the Wyckoff Wave put in another poor quality rally. It will be difficult for the Wyckoff Wave to put in a noticeable reaction until supply, which should be coming into the market as demand dries up, is able to be sustained for more than a single trading day..

The Optimism – Pessimism Index moved sideways and remains in an overbought position relative to its upward trend channel. The negative inharmonious actions with the Wyckoff Wave, when compared with points D, B, Z and X remain in place.

The Force Index also move sideways and continues to produce low negative readings. The mitigating impact on the clearly overbought Technometer continues.

On Monday, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave continued its long slow march to the upside. However, the mirroring price spread over the last couple of days suggests the end may be near.

The Technometer continues in its overbought condition. The O-P Index’s strong effort to the upside is superior to the results shown by the Wyckoff Wave.

These indications all point to a reaction, but until supply comes into the market with more force and, more importantly, is sustained the Wyckoff Wave will continue its poor quality rally.

Regardless, when the end comes it should come quickly. This is why aggressive short-term bears can consider new positions to the downside.