Correction In Progress

Thursday, March 23, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.   We are continuing to hold shorts looking for lower prices.
Short-term bulls should stand aside.
Intermediate & Long Term:
Intermediate and long term positions to the upside should be maintained.
There are no intermediate or long term opportunities to the downside.
Market Trends:
Intra-day: Down
Short Term: Down
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened unchanged and spent the rest of the day trading both sides of it.  Volume was lackluster and gave no new clues.
The Technometer is near a neutral reading.
The Nasdaq and S&P 500 were both down slightly today.
 


A review of the intra-day waves shows the Wave opening unchanged and then had a brief rally into the lunch hour, and then pulled back to unchanged at the close.  The O-P continues to trade heavy as we had been mentioning on these daily updates.
The Force Index closed slightly higher, but continues to apply downside pull on the Wyckoff Wave as well.  A reading of -287 will continue to favor more downside price action.
On Friday, the Technometer will open in a neutral reading.
 

 
After Wednesday’s sharp selloff on an increase in volume, we have now had two days of sideways action.  The O-P and Force are giving no new clues, and continues to favor more downside.  The Technometer is back to neutral and should allow more downside in the days ahead as well.
 

 
Bonds have traded mostly sideways last two days, and we are on the sidelines.
Good Trading,
Todd Butterfield