Rally continues….

Wednesday, September 20, 2017
What To Do?
Short Term
The Wyckoff Wave continues its rally off of the intermediate term support line of uptrend channel.
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: Up
Short Term: Up
Intermediate Term: Up
Long Term: Up
The stock market, as measured by the Wyckoff Wave traded higher Wednesday on the day of FED speak.  Volume was slightly higher than Tuesday’s level.
The O-P traded slightly higher today.
The Force Index traded new highs for the move.  This is allowing the Wave to continue its advance.
The Technometer is trading at overbought levels, after coming off extreme overbought.
The S&P 500 and Nasdaq were both flat today.
 


A review of the intra-day waves shows the Wave rallying early in the morning, then leveling off midday for Fed speak, followed by a rally into the close.
The O-P was slightly higher today, but underperforming the last three days versus the Wyckoff Wave.  Due to this we still feel the Wave could experience a short term correction.
On Thursday, the Technometer will open in an overbought condition.
 

 
The Wyckoff Wave has continued its rally off of the back up to the creek from 2-3 weeks ago.   This rally continues to be relentless to the upside.  Volume has not increased on the rally but has stayed constant.
We were expecting some type of short term correction to relieve the extreme overbought Technometer from 3 days ago.
 

 
We have included the Wyckoff Wave Growth Index (WWG) into our discussions as this market performs much different then the Wyckoff Wave.  We have stayed short this market due to its relative underperformance.  It continues with this performance….
 

 
The TLT continues lower as expected.  The Technometer is now registering an oversold reading, so we could experience a short term rally here to correct the decline of the last 10 days.  Then we would expect a selling opportunity again to add to short positions.
 

 
Good Trading,
Todd Butterfield