Expecting continued trading range…

This past week the Wyckoff Wave extended its advance off of the Spring of the support level of “M” and “O” and back near the resistance line of the recent trading range.    Volume was back to more normal levels and showed some demand present.

The Technometer is nearing an overbought condition on the rally.

The S&P was up approximately 1.0% for the week and the Nasdaq was up  1.5%.

After experiencing a spring off of the recent trading range support level at “S”, the Wyckoff Wave extended its advance last week.  We were looking for a more important test of the spring once this rally runs its course.  The Wave continued its advance closer to the resistance at the top of the trading range.

The O-P extended its rally but still has not shown much strength as you would expect.  We still look for a move back to the bottom of the trading range for a test of the spring, or continued trading range action.

The Force Index closed the week at +18, which was a major improvement over what we have seen for months, and is providing upside pull.

We finally established a few short positions late Friday, due to our expectation of some type of correction from these levels.  We are still holding shorts of weak performing stocks, and also holding a few longs on outperforming stocks.   We would continue to look for stocks that are outperforming to the upside, and could lead us higher after this correction has run its course.

The bond market was up strongly for the week.  We are standing aside but will be looking to sell this rally.
Good Trading,

Todd Butterfield

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