Short-term bears should maintain their positions to the downside.

Click Here For Wyckoff Wave Charts 06-24-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term bears should maintain their positions 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 Down

Short Term: Neutral

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded lower on increased volume. It closed near the bottom of a wider price spread, in a high neutral condition relative to the Technometer. The price spread and volume suggest the presence of supply.

A review of the intra-day waves confirms the above. After a huge gap opening to the downside, which encompassed 86% of the days loss, the Wyckoff Wave rallied to point Z. Then, it reacted for the rest of the trading day.

While the reaction was, most certainly, supply driven, after the gap opening, it continued on relatively reduced price spread and volume. The Wyckoff Wave reacted to point A. Then, it rallied briefly to point B. There the little demand was present tried up. Supply came back into the market and the Wyckoff Wave reacted sharply to point C.

Demand returned and the Wyckoff Wave rallied off the low at point C. The last intra-day wave of the day lasted 5 min. and had extraordinary high volume. The fact that it did not decline dramatically suggests some demand was present.

While a new trend channel cannot yet be drawn, the intra-day trend is changed to down.

Today strong reaction and relatively mild demand suggests the Wyckoff Wave still has room to the downside. While there may be a brief rally, it appears the reaction off point X is not complete.

The Optimism – Pessimism Index reacted slightly. It continues in a negative divergence with the Wyckoff Wave, when compared to point V. The short-term negative divergence with point A has been eliminated. The O – P Index also continues in its overbought position, relative to its upward trend channel.

The Force Index reacted and is producing strong negative readings.

Tomorrow, the Technometer will open in a neutral condition.

An old Wyckoff axiom is that news does not drive the stock market. It simply gets it to where it was already going to go, just a little faster.

That’s what happened today as the situation in Great Britain had a significant impact on all the financial markets. In one day, the Wyckoff Wave reacted to its first resistance point on the vertical line chart. That is the halfway point of the rally from points Z and the low at point B.

The Wyckoff Wave has a good opportunity to continue to react and test the support line drawn through point Z.

Presently there are no Wyckoff indicators that suggest the market is ready to rally. The O – P Index is still in a negative divergence with the Wyckoff Wave. The Technometer is neutral and there is no help from the strong negative numbers emanating from the Force Index.

Wyckoff traders who took short positions should maintain them. A poor quality rally would indicate a resumption of the down move. If we see reduced price spread and volume, this could be an indication the reaction is coming to an end. These are indicators that should be carefully watched over the next several trading days.

The market is reacting. The Wyckoff Wave will tell us when that reaction is coming to an end.