Once again back into the middle of the recent range…

This past week the Wyckoff Wave was lower for the week.  Early in the week the Wyckoff Wave was quietly trading sideways, then we saw some selling on Thursday because of weakness in IBM, and weakness on Friday from GE.  For the week, price and volume gave no major clues except we have once again fallen back into the middle of the recent range.

The Technometer is trading at neutral.

The S&P was up .5% for the week and the Nasdaq over 1%.

The Wave began the week with quiet sideways action, then selling came in late in the week.  We ended the week lower with volume increasing ever so slightly.

The O-P traded sideways all week and gave no extra insight.

The Force Index was up slightly on the week and providing some support.

GE has been relative weak compared to the Wyckoff Wave and finished Friday lower on earnings news and a new low for the move.  We are still short.

We are also short the QQQ and it continued its recent rally back to the overbought line of the intermediate term uptrend.   We still expect this market to pullback in the near future.

 

The Wyckoff Wave Growth Index (WWG) did rally off the support line of the uptrend as expected a few weeks ago, and now we find ourselves at the overbought line.  The Technometer is registering overbought and we think we are susceptible to some type of correction here.

 
The bond market rallied last week as we were expecting.  But the Technometer did not return to overbought, but actually become more oversold.  We are at the 50% retracement level of the recent decline, but we will wait for the Technometer to come off of oversold before we would enter a short.
 

 
Good Trading,

Todd Butterfield