Watch and wait continues

Click Here For Wyckoff Wave Charts 06-20-2016

Short Term:

Their are no short-term opportunities to the upside.
There are no short-term opportunities to the downside

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 bottom 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 more of a supply driven day.

After a wide gap opening to the upside, the Wyckoff Wave continued its rally to point Q. There demand was withdrawn and supply came into the market. The Wyckoff Wave reacted for the rest of the trading day.

The move to point Q changed the intra-day trend from neutral to up. The momentum from the wide gap opening pushed the Wyckoff Wave into an oversold position relative to the trend. It then reacted back into the new trend channel.

Although supply was present, it was not dominant. This provides an initial indication that the test of last week’s high at point Z will be successful. However, that test may not have been completed.

There is a reasonable probability that the Wyckoff Wave will continue to rally and test the high at point Z.

The Optimism – Pessimism Index rallied. It remains in an oversold position relative to its upward trend channel. The negative divergence with the Wyckoff Wave when compared with point A continues in effect.

The Force Index reacted slightly and continues to produce strong negative readings.

Tomorrow, the Technometer will open in a low neutral condition.

Today, the Wyckoff Wave made an attempt to rally and test the high at point A. Much of its progress was made as a result of the gap opening. As mentioned above, the supply that came into the market, after the morning rally, was not particularly strong or sustained. This suggests the Wyckoff Wave will continue to rally and test the new top of the trading range. It also suggests the test will be successful.

The Technometer’s low neutral condition suggests there is still some room to the upside. However, the strong negative Force Index readings continue to suggest the Wyckoff Wave will be unable to move strongly through the resistance at the top of the trading range.