Maintain shorts…

Click Here For Wyckoff Wave Chart 06-13-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term positions taken to the downside, should be maintained. However, as the Wyckoff Wave may be approaching the end of the reaction, these position should be closely watched

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: Down

Short Term: Neutral

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded lower on decreased volume. It closed at the bottom of a wider price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves confirms the above. After a small gap opening to the downside and a brief, 10 min. follow through, the Wyckoff Wave rallied to point F.

There, demand was withdrawn and the Wyckoff Wave reacted for the rest of the trading day.

The reaction featured a significant lack of demand until point G. Then, during the last hour and 15 min. of the trading day, supply returned and the Wyckoff Wave continued its reaction. The Wyckoff Wave closed at its low for the trading day.

With the exception of the brief move to point F, the Wyckoff Wave has remained in its intra-day down trend channel. As no demand has come into the market, the reaction is expected to continue. If that happens there is a good probability that the Wyckoff Wave will move into an oversold position, relative to the trend channel.

The Optimism – Pessimism Index reacted. It remains in an overbought position relative to its upward trend channel. The negative inharmonious action, with the Wyckoff Wave, when compared to point V, is changed to a negative divergence.

The Force Index reacted and is producing low negative readings.

Tomorrow, the Technometer will open in a nearly oversold condition.

Today, the Wyckoff Wave continued its reaction off the new top of the trading range, marked as point A.

Despite today’s lack of demand, both the Technometer and Force Index reacted sharply. This suggests that a continued reaction will quickly place the Wave in an oversold condition relative to its Technometer.

If the Force Index continues to react there will be a mitigating impact on any rally.

All this suggests that the Wyckoff Wave probably will not be able to reach the low at point Z on this reaction.

A rally to test the high at point A is the scenario with the highest probability of success. So far, no demand has come into the market. This is a preliminary indication that the test could be successful. However, it will be important to watch the quality of demand if the Wyckoff Wave rallies to test point A.