Correction Still In Progress

Monday, April 3, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.   We are continuing to hold shorts looking for lower prices, and added a few shorts today.
Short-term bulls should stand aside.  You can begin preparing a list of stocks showing out-performance to the upside for possible purchase.
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: Down
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened lower, and worked lower into early afternoon, and then recovered some of the losses by the close.  Volume was the same as Friday with some supply present.
The O-P and Force are in downtrends.
The Technometer is registering a neutral reading.
The Nasdaq and S&P 500 were both down fractionally as well today.
 


A review of the intra-day waves shows the Wave opening lower and continuing lower for the majority of the day, until a slight rally at the close to cut the losses.  We feel that we are in the midst of a correction, and we are still going to react further in the days ahead.
The O-P traded slightly lower today and in harmony with the selloff.  It appears there is still no interest in the upside, and we can continue to correct.
The Force Index closed lower today and a new low for the last few months.  This continues to apply downside pull on the Wyckoff Wave and favors more downside price action.  The Force closed at -330 today.
On Tuesday, the Technometer will open in a neutral reading.
 

 
We look for continued correction in the days ahead.  The O-P and Force continue in downtrends, and favors more downside.  The Technometer is neutral and allows more downside in the days ahead as well.
 

 
Bonds traded higher once again today, and we are on the sidelines.
Good Trading,
Todd Butterfield