Aggressive short-term traders can take short positions

Click Here For Wyckoff Wave Chart 06-22-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term positions to the downside could have been taken today after demand was withdrawn. They are still available to aggressive short-term traders.

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, experienced and intra-day failure to the upside. It closed, on very slightly decreased volume, near the bottom of a wider price spread, in a low neutral condition relative to the Technometer. The intra-day failure suggests a lack of demand.

A review of the intra-day waves indicates that although little demand was present, today was a supply day.

After a gap opening to the upside and a strong 20 min. follow-through to point S, demand was withdrawn. The Wyckoff Wave reacted to point T. While early supply was present, the second half of the reaction was due to a lack of demand.

Once again, the Wyckoff Wave weakened its intra-day up trend channel at point T.

Demand returned briefly as the Wyckoff Wave attempted to rally back into the uptrend channel. It made little progress and demand was withdrawn as the Wyckoff Wave reached point U. Supply returned for the last hour of the trading day.

For the third time in the last two days, the Wyckoff Wave has weakened its intra-day up trend channel.

Today’s presence of supply accompanied by the lack of demand, suggests the test of point Z, which was originally thought to have been happened at point Q, was completed today at point S. The inability for demand to be sustained, as it approached an intra-day resistance point, is a bearish indication and suggests the Wyckoff Wave will react and test the low at point L.

The Optimism – Pessimism Index reacted 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, has been changed to a negative inharmonious action.

The Force Index reacted. It is producing high negative readings.

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

Today the Wyckoff Wave briefly rallied to the top of the trading range and tested the high at point V. Demand was withdrawn and the Wyckoff Wave reacted.

Today’s market action suggests the Wyckoff Wave will react and test the lows at point B and quite possibly point Z.

The one concern is the low neutral condition of the Technometer. However, the extremely weak Force Index will have a significant mitigating impact on the Technometer, if it moves into an oversold condition.

The high negative Force Index readings will also make it difficult for the Wyckoff Wave to put in much of a rally.

So far, there has been no ending action in this trading range, which began last August. If the Wyckoff Wave reacts through point Z and encounters good demand, we could see a Spring of this phase of the trading range, which began when the Wyckoff Wave rallied through the old resistance line.

This advance may or may not happen. Just something to keep in the back of your mind.

Two of my granddaughters will be graduating from high school tomorrow. After graduation, I will be attending a celebratory dinner. Thursday’s Pulse of the Market Daily Report will be produced and e-mailed later in the evening.