Continue to watch and wait.

Click Here For Wyckoff Wave Chart 02-29-2016

It is especially important for the bulls to see supply drying up and the Wyckoff Wave holding around the lows at point O.
Short Term:

Presently, 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: Changed to Neutral

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 at the bottom of a wider price spread, in a clearly oversold condition relative to the Technometer. The price spread and volume suggest a lack of supply.

A review of the intra-day waves indicates today was a supply day. After a small gap opening to the upside, the Wyckoff Wave continued its poor quality reaction to point capital F. This allowed demand to return. The Wyckoff Wave rallied to point G.

The rally consisted of one up intra-day wave. The Wyckoff Wave successfully tested the highs at points A, C and E. It then began to react and, during the last two hours of the trading day, good supply came into the market.

This changes the intra-day trend from Up to Neutral.

The successful test of Friday’s highs and presence of good supply gives the Wyckoff Wave an opportunity to continue its reaction and test the lows at point V (point Q on the daily chart).

The Optimism – Pessimism Index reacted. It remains in a negative divergence with the Wyckoff Wave when compared with points D, B, Z and X. To the downside it is in a very short positive divergence with the Wave when compared with point O.

The Force Index reacted and is producing moderate negative readings. There is no mitigating impact with the oversold Technometer.

Tomorrow, the Technometer will open in an oversold condition.

Today the Wyckoff Wave attempted to rally, but encountered good supply and reacted to a poor close.

Today’s presence of supply does not necessarily suggest the Wyckoff Wave will react all the way back to the bottom of the trading range.

The Technometer has moved into an oversold condition. This suggests, that while the reaction may continue, it will be difficult for it to reach the bottom of the trading range.

It is also not unusual for the Technometer become oversold a few days prior to the bottom of a reaction.

A continued reaction can be supported by a weakening Force Index and good effort to the downside, displayed by the O – P Index.

Both those indicators, reflect positive divergences This suggests the Wyckoff Wave will hold above the trading range lows and, if supply dries up over the next couple of days, be able to rally back towards the top of the trading range.

Charts of the Wyckoff Wave are attached.