No opportunities…

Click Here For Wyckoff Wave Charts 06-29-2016

Short Term:

Their are no short-term opportunities to the upside.

There are no short-term opportunities to the downside. Today’s morning demand and the exceeding of the halfway point, described below, suggest any reaction will be short and shallow.

Intermediate & Long Term:

Their are no intermediate or long term opportunities to the upside.

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

Market Trends:

Intra-day: Changed to 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 near the top of a narrower price spread, in a low neutral condition relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves indicates that, today was split between good demand in the morning and a withdrawal, or lack of demand in the afternoon. After a gap opening to the upside the Wyckoff Wave continued to rally on good demand to point I.

This lack of demand suggests the rally off the low at point D may be running out of steam.

The intra-day trend is changed from neutral to up. This morning’s good demand drove the Wyckoff Wave into an overbought position relative to its new trend. The afternoon lack of demand suggests the Wyckoff Wave will react back into the new trend channel. The reaction could continue and the Wyckoff Wave could test the lows at point F (point D on the daily vertical line chart).

After a brief reaction to point J, on a lack of supply. The Wyckoff Wave continued to rally to its strong close. However, the rally off point J lasted 3 1/2 hours and the Wyckoff Wave only gained 115 points. This was where the lack of demand came in.

The Optimism – Pessimism Index rallied and is testing the supply line of its upward trend channel. It has returned to a negative divergence with the Wyckoff Wave, when compared with point V.

The Force Index rallied, but is still producing strong negative readings.

Tomorrow, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave continued its rally off the low at point D. The most significant point about today’s market action was that the rally has passed the halfway point of the reaction from points C to D. This is a bullish indication and reduces the probability that the reaction from point C to D was a Sign of Weakness.

Today’s afternoon lack of demand suggests the Wyckoff Wave may be vulnerable to a slight reaction, even to test the low at point D. This would be a reasonable response to the strong reaction off point C. If the possible reaction is on reduced price spread and volume, it will confirm the “not a sign of weakness” scenario.

In addition, the reaction to point D held above the earlier low at point Z. This is another positive sign.

If the Wyckoff Wave does react, the Technometer, which is in a low neutral condition, will quickly become oversold. The strong negative Force Index readings could still have an impact on an oversold Technometer. Therefore, the Force Index should be carefully watched during any reaction.

While the Wyckoff Wave may react and test point D, there is a good probability that test will be successful. This would give the Wyckoff Wave an opportunity to rally again and test the top of the trading range.