Further Room To The Downside

Monday, January 30, 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: Down
Short Term: Neutral
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened lower today, and continued lower for the first two hours of trading.  Then the Wave spent the rest of the day trying to recover some of the losses.  Volume was slightly higher on today’s pullback.  The price spread and volumes showed supply present today.
The Technometer is trading just above a neutral reading..
The Nasdaq and S&P 500 were both down approximately .75% today.

A review of the intra-day waves shows the Wave opened lower and had a quick selloff in the first two hours.  Volume did not come in strong to the downside, so the Wave spent the rest of the day trying to cut its losses for the day.
The Optimism-Pessimism Index closed higher once again today.
The Force Index closed higher as well.  The O-P and Force cannot seem to keep enough pressure on the market to get a larger correction started.
On Tuesday, the Technometer will open in a neutral reading once again.

The last three 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, and also will not follow through to the downside.  We continue to stay locked in a tight range, but we feel there is still more room to the downside.

Good Trading,
Todd Butterfield