Aggressive bears consider new positions

Click Here For Wyckoff Wave Charts 06-21-2016

Short Term:

Their are no short-term opportunities to the upside.

Very aggressive short-term bears could consider new positions to the downside. These would be very short-term trades and would be closely watched.

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: Up, but in a slightly weakened 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 in the middle 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 confirms the above. After a small gap opening to the downside, the Wyckoff Wave reacted to point R on a lack of demand.

Then, it spent the next 4 1/2 hours on a poor quality rally to point S. After a test of point S, supply came in on the last intra-day wave and the Wyckoff Wave reacted to its closing price.

The Wyckoff Wave weakened its intra-day up trend channel on the reaction to point R. The poor quality rally to point S was unable to move the Wave strongly back into the trend channel. On the last intra-day wave, the Wyckoff Wave again weakened its trend channel and closed in a slightly oversold position relative to the channel.

It appears yesterday’s rally to point Q, was a successful test of the intra-day hi at point Z.

Today’s lack of demand and inability to make progress to the upside, suggests the Wyckoff Wave will react and test the lows at point L.

The Optimism – Pessimism Index rallied slightly. It remains in an overbought position relative to its upward trend channel. The negative divergence with the Wyckoff Wave when compared with point V continues. However, it is a very slight negative divergence and could be eliminated on a small rally.

The Force Index reacted and is producing strong negative readings.

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

Today, the Wyckoff Wave attempted to resume its rally off point B. The attempt appears to a failed, due to a lack of demand. This would suggest the Wyckoff Wave has successfully tested last week’s high at point A and is prepared to react.

However, the Technometer’s low neutral condition suggests it will quickly become oversold on any reaction. This suggests the Wyckoff Wave may simply react to test the low at point B.

The strong negative readings from the Force Index continue to suggest it’d be difficult for the Wyckoff Wave to put in a strong rally.

These suggest that, based on what appears to be a successful test of point A, aggressive short-term bears could consider new positions to the downside. However, these would be very aggressive positions and they should be closely watched.