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: 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 decreased volume, at the top of a narrower price spread, in a neutral condition relative to the Technometer. The intra-day failure suggests a lack of supply.

A review of the intra-day waves confirms the above. After a small gap opening to the upside and a brief 5 min. follow-through to point Y, the Wyckoff Wave reacted to point Z. The reaction was on moderate supply.

Supply was withdrawn and the Wyckoff Wave rallied for the rest of the trading day

While some demand was present, supply, which was withdrawn at point Z, never returned. The absence of downward pressure allowed the intra-day rally to continue.

The Wyckoff Wave remained in its intra-day up trend channel. It also moved into a position to test the recent highs at points U and S. While little supply was present today, it is expected the Wyckoff Wave will encounter overhanging supply as it attempts to rally through points U and S

Today’s rather poor quality rally continues to suggest that supply will come into the market. The test will be successful and the Wyckoff Wave will react.

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

The Force Index rallied, but is still producing moderate negative readings.

Tomorrow, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave reacted and tested the resistance, now support, area at the top of the mini trading range. The test was successful and the Wyckoff Wave rallied to a strong close. It is presently testing the supply line of its intermediate-term downtrend channel and Monday’s high at point N.

Due to the lack of supply, today’s rally gives the Wyckoff Wave one more opportunity to rally past point N and continue towards the top of the primary trading range.

While today’s market action does increase the probability that the Wyckoff Wave will continue to rally, it still has a fairly low probability of success. However, if the Wyckoff Wave rallies past point N, the short-term trend will be changed to up.

The decreasing and relatively low volume seen, and little progress to the upside, since the Wyckoff Wave first move through the top of the mini trading range, continues to suggest an overall lack of demand. This continues to indicate the Wyckoff Wave is vulnerable to a reaction.

In addition, it will be difficult for the Wyckoff Wave to put in a substantial rally in the face of the negative divergences with the  O – P Index.