good place for aggressive short-term bears to take positions to the downside

Click Here For Wyckoff Wave Chart 06-23-2016

Short Term:

Their are no short-term opportunities to the upside.

Even though the Wyckoff Wave has advanced, this is still a good place for aggressive short-term bears to take positions to the downside. Previous positions should be maintained..

Intermediate & Long Term:

Their are no intermediate or long term opportunities to the upside.

There are no intermediate or long term opportunities to the downside.

Market Trends:

Intra-day: Up

Short Term: Neutral

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on increased volume. It closed at the top of a narrower price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest the presence of supply.

A review of the intra-day waves indicates there was a bit of a standoff between demand and supply, with demand having a very slight advantage.

After a wide gap opening to point W, which accounted for 92% of the day’s gain, the Wyckoff Wave moved sideways until the last wave of the trading day. Then, it rallied for the last 35 min. and closed at its high for the day. The fact that such a high percentage of the days gain was in the gap opening is not a positive indication.

After the gap opening, supply came into the market and the Wyckoff Wave reacted. Then it rallied to point X, but encountered supply again and reacted. After a brief sideways move, demand returned again and the Wyckoff Wave rallied to its strong close.

The Wyckoff Wave has been unable to reach the resistance line of its intra-day up trend channel at both points W and X. It is also seeing supply coming into the market after it attempts to rally.

While the Wyckoff Wave has certainly been stronger than expected and today’s forecast for a reaction did not take place, it continues to appear the Wyckoff Wave is vulnerable to react. This will be especially true if the Wave is unable to reach the trend channel’s supply line tomorrow.

The Optimism – Pessimism Index rallied slightly. It remains in an overbought position relative to its upward trend channel. The negative inharmonious action with the Wyckoff Wave, when compared with point V, remains in place. There is a new short term negative divergence with the Wyckoff Wave when compared with point A.

The Force Index rallied slightly, but is still producing strong negative readings.

Tomorrow, the Technometer will open in a slightly overbought condition.

Today, the Wyckoff Wave refused to react and rallied slightly above the previous high at point A. The narrowing price spread suggests that some supply was present and the Wyckoff Wave will have a difficult time continuing to rally.

This observation is supported by a Technometer, which, on Friday, will open in a slightly overbought condition. We are also seeing a short-term negative divergence with point A. While the Wyckoff Wave has moved above point A, there has been very little effort to the upside, as the O – P Index is lower than point A and providing little effort to the upside.

Finally, as mentioned yesterday, the strong negative readings from the Force Index make it difficult for any rally to continue.

Today’s move was not an upthrust as their was little increase in volume and, more importantly a strong close. This suggests the Wyckoff Wave is simply putting in another resistance point in the developing trading range and, after that is completed it will react.