Another Sideways Dull Day

Monday, February 6, 2017
What To Do?
Short Term
Short-term bears should hold original short positions and keep stops as previously directed.  Be prepared to add to shorts as Technometer reaches overbought once again on this rally.
Short-term bulls should stand aside.
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: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened unchanged today, and then traded the rest of day in a narrow range and closing slightly lower.  Volume was lower than it has been in the last month.  The price spread and volume gave no major clues once again today.
The Technometer is close to an overbought reading.
The Nasdaq and S&P 500 were both down slightly today.

A review of the intra-day waves shows the Wave opening unchanged as the O-P made another new high for the recent rally.  The Wave continues to lag.
The Force Index closed higher today.
On Tuesday, the Technometer will open near an overbought reading.  This combined with the O-P divergence should keep the Wave on the defensive.

The last few weeks, the Wave has been slowly working lower from the resistance at the top of the trading range.   Volume has been lackluster and volatility low.  We would expect this to change, and for the reaction to continue to the downside and pickup speed.
Our indicators have become friendly for the bond market, so possibly we will see a further stock market correction while the bond market rallies in sympathy.  Bonds had a big up day today, and we would expect that rally to continue.

Good Trading,
Todd Butterfield