Expecting the Reaction to Continue

Wednesday, January 25, 2017
What To Do?
Short Term
Short-term bears should hold original short positions and keep stops as previously directed.  We were stopped out today of the second set of shorts we had added.
Short-term bulls should stand aside.
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: Up
Short Term: Neutral
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened sharply higher today, and once again continued higher for the rest of the day. Volume was unchanged today from yesterday, and still at average levels.  The price spread and volumes showed demand present once again.  Today’s rally changes the intra-day trend to up, as well as the short term trend to neutral.
The Technometer is trading just above a neutral reading..
The Nasdaq and S&P 500 were both higher almost 1% today, and stronger than the Wyckoff Wave.

A review of the intra-day waves shows the Wave opened sharply higher and continued higher all day.  The O-P was higher as well today with another new high for the move.  The O-P is leading the Wave and the Wave is still lagging considerably.
The Optimism-Pessimism Index was slightly higher today.
The Force Index closed slightly higher today as well, and in the last two days has rallied considerably to a negative reading of only -64.  This is allowing the Wave to add to its gains.
On Thursday, the Technometer will open in a neutral reading.

Today the Wave extended its recent gains to the upside.  Resistance at point “D” did not stop the rally.  Price spread has been better on the last two days rally, but volume has held constant.  Once again, we are not seeing the go and go now type of price/volume action we would like to see if this is a successful “Back Up To The Creek” we just completed.  We still believe that this rally is not the start of a major move to the upside.

Good Trading,
Todd Butterfield