Bears maintain positions…

Their are no short-term opportunities to the upside.

Aggressive short-term bears should maintain their existing positions. If demand continues tomorrow short-term position should be closed.

Intermediate and long-term bulls should maintain existing positions.

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

Intra-day: Down and in an overbought position.

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 nearly oversold condition relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves indicates, that despite the lower volume, demand was present throughout most of the trading day.

After a small gap opening to the upside, demand remained and the Wyckoff Wave rallied to point V. Although demand was sustained it was gradually reduced as the trading day progressed.

During the last 50 min. of the trading day some supply came into the market and the Wyckoff Wave reacted slightly.

The Wyckoff Wave is presently in an overbought position relative to its intra-day down trend channel.

The Wyckoff Wave is presently testing earlier highs at points R and P. The gradually reducing level of demand continues to suggest the Wyckoff Wave will react and return to its intra-day down trend channel.

The Optimism – Pessimism Index rallied. It remains in an overbought position relative to its upward trend channel. The O-P Index is in harmony with the Wyckoff Wave.

The Force Index rallied slightly and is producing moderate negative readings.

Tomorrow, the Technometer will open in a slightly oversold condition.

Today, the Wyckoff Wave began to rally off the support formed by earlier tops of the trading range. They are points X, Z, B, D, R, and T.

While demand was present and was sustained throughout most of the trading day, it was not the strong demand that normally appears when a rally off a support point begins.

This continues to suggest that, even if point X is not the successful test of point V, the Wyckoff Wave will have a difficult time continuing its advance.

Today’s market action does offer a new scenario that needs to be considered. This is that the Wyckoff Wave will hold above the top of the trading range and make data support area as it begins a new phase of the trading range. This would put the support in the area of Friday’s low and the resistance at point V.

Therefore, it becomes a question of whether the new phase the trading range will be supported at Friday’s low or at points U and S.

Regardless of where the support area is, the new phase of the trading range scenario continues to have the highest probability of success.