Continue to watch and wait.

Click Here For Wyckoff Wave Chart 02-26-2016

Short Term:

There are no short-term opportunities in either direction.

Intermediate & Long Term:

Intermediate and long-term bulls should maintain existing positions.

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

Market Trends:

Intra-day: Up, but weakened and in an oversold condition

Short Term: Neutral

Intermediate Term: Down.

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, experienced and intra-day failure to the upside. It closed, on increased volume, at the bottom of a narrower price spread, in a low neutral condition relative to the Technometer. The intra-day failure suggests the presence of supply.

A review of the intra-day waves confirms the above. After a fairly wide gap opening to the upside, demand continued and the Wyckoff Wave rallied to point A. There, as it tested the highs at points U and S, it encountered overhanging supply.

The result was a reaction to point B. The Wyckoff Wave attempted another rally to point C. The rally was on narrower price spread, but increased volume. This confirmed supply was present.

After a reaction to point D, the Wyckoff Wave rallied to point E. The rally was on relatively reduced price spread and volume. It is important to notice that points C and E were below point A. The market action from points A to E indicated a successful intra-day test of points U and S.

Supply came into the market and the Wyckoff Wave reacted for the rest of the trading day. It noticeably weakened its intra-day up trend channel.

It should be noted that during the last hour and 20 min., supply was reduced. While the amount of supply increased near the end of trading, supply must be sustained on Monday, if the Wyckoff Wave is going to react and test the low at point V.

The Optimism – Pessimism Index reacted and is attempting to reenter 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 and is producing moderate negative readings.

On Monday, the Technometer will open in a slightly oversold condition.

Today, the Wyckoff Wave successfully tested the high at point N and reacted. The test was of moderate quality, as the Wyckoff Wave moved slightly above point N before reacting.

As mentioned above, although the Wyckoff Wave reacted and supply was certainly present, it needs to be sustained if the Wyckoff Wave is going to react and test the low at point M.

The reduced supply and the slightly oversold Technometer suggests this will be difficult to accomplish. Instead, it will be important to see if the Wyckoff Wave is able to hold above the top of the mini trading range, or at worst test the low at point O.

The inability of the Wyckoff Wave to continue to rally at point N and today, suggests the Wyckoff Wave has not put in a Last Point of Support in the mini trading range. It also suggests that the resistance points at the top of the trading range need to be extended to include points N and, if the Wyckoff Wave reacts on Monday, Friday’s high.

If the Wyckoff Wave rallies on Monday and moves through point N, the short-term trend will change to up. A support line will be drawn from point M through point O. A parallel supply line will be drawn through point N.

Charts of the Wyckoff Wave are attached.