Expecting the Reaction to Continue

Friday, January 27, 2017
What To Do?
Short Term
Short-term bears should hold original short positions and keep stops as previously directed.
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 unchanged today, and drifted slightly lower the rest of the day.  Volume was lower on today’s pullback.  The price spread and volumes showed lack of supply today.
The Technometer is trading just above a neutral reading..
The Nasdaq and S&P 500 were basically unchanged today.

A review of the intra-day waves shows the Wave opened unchanged and drifted lower the rest of the day.  Volatility continues to decline and we continue on this sideways movement of the last two months.
The Optimism-Pessimism Index was slightly lower today.
The Force Index closed lower today as well.  The Force rallied Tuesday/Wednesday, and then gave up those gains Thursday/Friday.  We are trading right back at the levels we have been at, at -157.  This downside force is keeping a lid on prices.
On Monday, the Technometer will open in a neutral reading.

The last two days, the Wave appears to be trying to roll over once again.  Volume has not been able to extend the price higher to any great degree.  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