More Testing

Thursday, November 3, 2016

What To Do?

No changes from yesterday

Short Term:
Short-term bulls should continue to maintain their positions. In addition, new positions can be considered to the upside.

There are no short-term positions to the downside.

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: Down
Short Term: Neutral.
Intermediate Term: Neutral
Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded slightly lower on decreased volume. It closed in the lower half of a narrower price spread, in a clearly oversold condition relative to the Technometer. The price spread and volume suggest a lack of supply.

A review of the intra-day waves confirms the above. After a small gap opening to the upside, some supply came into the market and the Wyckoff wave put in a thirty minute reaction to point O.

There it encountered demand and rallied to point P. Then, the Wyckoff Wave spent the afternoon in a low, slow reaction. The reaction was on a lack of supply.

Twenty minutes before the market closed, the Wyckoff Wave tested the support line at the bottom of the intra-day trading range. There it encountered demand and rallied for the last twenty minutes of the trading day.

Today marks the fourth time the Wyckoff Wave has tested the series of blows that began at point A. Although today’s late demand only lasted twenty minutes, it was relatively strong. This suggests the Wyckoff Wave will continue its rally tomorrow.

The Optimism – Pessimism Index reacted. It continues in its positive divergence, with the Wyckoff Wave, when compared with points Q, O and K.

The Force Index rallied, but is still producing high negative readings. There is still a mitigating impact with the clearly oversold Technometer.

Tomorrow, the Technometer will open in an oversold condition.

Today, the Wyckoff Wave continued to react on reduced price spread and volume. It also held at the support line that began at point D. Today’s lack of supply continues to suggest that the Wyckoff Wave will rally off that support.

Like yesterday this scenario is supported by the clearly oversold Technometer and the positive inharmonious action with the O-P Index.

Yesterdays comments about the mitigating impact of the Force Index have not changed.

The Wyckoff Wave is running out of space to continue to react on a lack of supply. This would suggest the supply is very close to being dried up and the Wyckoff Wave should begin its rally in off the support in the very near future.