Continue to watch and wait.

There are no short-term opportunities in either direction.

Intermediate and long-term bulls should maintain existing positions.

There are no intermediate or long term opportunities to the downside.

Intra-day: Changed to Up.

Short Term: Neutral

Intermediate Term: Down.

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, experienced an intra-day failure to the downside. It closed, on increased volume, near the top of a wider price spread, in a neutral condition relative to the Technometer. The intra-day failure suggests the presence of demand.

A review of the intra-day waves confirms the above. After a gap opening to the downside, supply remained and the Wyckoff Wave reacted for the next 55 min. to point V.

Supply was withdrawn and the Wyckoff Wave eventually began a rally that lasted the rest of the trading day.

After moving sideways for the next hour, demand came into the market and the Wyckoff Wave rallied to point W. It then backed off to point X on reduced price spread and volume.

As supply dried up, demand returned and the Wyckoff Wave rallied for the rest of the trading day.

The Wyckoff Wave did encounter support slightly below point B and appears ready to rally to test the recent highs at points U and S. In order for the test to be successful, tomorrow’s market action needs to be on reduced price spread and volume.

Today’s successive highs and lows changed the intra-day trend from neutral to up. The Wyckoff Wave is already in an overbought position relative to the new trend channel.

If wider price spread and higher volume come into the market, the Wyckoff Wave has an opportunity to put in a more substantial rally.

However, the overbought position suggests that may be a difficult task. Look for the Wyckoff Wave successfully test the highs at points U and S and react.

The Optimism – Pessimism Index reacted very slightly. It remains in an overbought position relative to its upward trend channel. The negative divergences, when compared with the Wyckoff Wave at points D, B, Z, and X remain in place.

The Force Index rallied and is producing moderate negative readings.

Tomorrow, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave reacted back into the mini trading range. It encountered demand, as it tested the support line of the intermediate-term downtrend channel. This resulted in a rally back through the resistance at the top of the mini trading range.

It does not appear that today’s early reaction, which moved the Wyckoff Wave noticeably back into the mini trading range, was a Last Point of Support. However, that cannot be dismissed.

Tomorrow, the Wyckoff Wave needs to “go and go now”. A positive performance would be wider price spread and increased volume, with the Wyckoff Wave closing above point M.

If it is unable to accomplish that, it should react back into the trading range.

If that happens, the trading range resistance line will be adjusted to include point M.

While doubtful, if the Wyckoff Wave puts in a strong move to the upside, it would be expected to continue to rally and test the top of the major trading range.

It is also important to note that even though the price spread and volume on the daily and intra-day charts indicated the presence of demand, the Optimism – Pessimism Index reacted slightly. This would suggest that on a very short-term basis there was little deal of effort behind today’s advance.

A continued advance would also be difficult in the face of the negative divergences with the O – P Index.