Downtrend In Place

Monday, April 10, 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.  You can begin preparing a list of stocks showing out-performance to the upside for possible purchase.
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: Sideways
Short Term: Down
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened the week higher, tested last Wednesday’s high, then corrected back to unchanged for the day.  Volume was lethargic once again.  Some supply is still present.
The O-P and Force are in downtrends.
The Technometer is registering a neutral reading.
The Nasdaq and S&P 500 were unchanged today.
 


A review of the intra-day waves shows the Wave opening higher, testing Wednesdays reversal high, then spending the rest of the day correcting back to unchanged.  We feel that we are still in the midst of a correction.
The O-P closed unchanged as well.  We still are showing the divergence of the Wave and the O-P from last week.  It appears there is no major interest in the upside, and we can continue to correct from here.
The Force Index closed unchanged as well.  The Force closed at -172 today.
On Tuesday, the Technometer will open in a neutral reading.
 

 
We are still expecting another leg lower for this correction.  Today’s early high tested last Wednesday’s reversal high.   We feel this correction will take out the lows at “M”, and test the lows at “G” and “E”.  The O-P and Force continue in downtrends, and favors more downside.  The Technometer is neutral and allows more downside in the days ahead as well.
 

 
Bonds traded higher today, and we are on the sidelines.
Good Trading,
Todd Butterfield