Back at the top of the recent range…

Thursday/Friday, August 24-25, 2017
What To Do?
Short Term
This market is very split so we are holding longs and shorts.  Short-term bears should stay short stocks with relative weakness, and bulls should stay long relative strength.  We held the Back Up To The Creek level so long positions were held….
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: Sideways
Short Term: Up
Intermediate Term: Up
Long Term: Up
The stock market, as measured by the Wyckoff Wave traded higher Thursday.  Volume was unchanged from Wednesday.
The O-P traded sideways today.
The Force Index traded slightly higher.
The Technometer is nearing overbought levels.
The S&P 500 was down .25% with the Nasdaq down slightly.
 


A review of the intra-day waves shows the Wave starting the day higher and then reacting into the close.
The O-P continues to have no rally attempt off of recent lows.
On Friday, the Technometer will be nearing an overbought level.
 

 
The Wyckoff Wave did have a successful back up at the end of last week.  We would expect an aggressive move to the upside now, which so far has not materialized.  We would like to see continued strength here if we are in fact headed higher.  Volume also has not came in as we would have liked.  We are now back at the top of the range and with the Technometer nearing overbought, so we might need to go back to the bottom of the range once again.
The negative aspect of recent action is the lack of rallying to the overbought line of the intermediate uptrend marked below.  We stopped in the middle of the trend and have turned down.   We might need to test the support line of the uptrend…
 

 
We have been speaking of the split market by discussing the Wyckoff Wave Growth Index (WWG).  This market has rallied somewhat this week after falling through the support line of the uptrend.  The Technometer was oversold and allowed a slight recovery.  But we are now registering a neutral reading and this market does not appear to want to go much higher.   We expect lower prices here….
 

 
The TLT has continued to make minor new highs on this recent rally.  We think that once this runs its course this market could turn down once again.  We are partially short and looking to go full position short.  The Technometer is extreme overbought at a 58 level.
 

 

Good Trading,
Todd Butterfield