More Dull Sideways

Thursday, April 20, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.   We are continuing to hold shorts looking for lower prices.
Short-term bulls should stand aside.  You can begin preparing a list of stocks showing out-performance to the upside for possible purchase.
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: Sideways
Short Term: Down
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened  slightly higher, rallied to the highs of the day , then corrected into the close to settle somewhat higher.  Volume was unchanged from yesterday.  Supply is still present.
The O-P and Force are in downtrends.
The Technometer is registering an almost oversold reading.
The Nasdaq and S&P 500 were up .75% today.
 


A review of the intra-day waves shows the Wave opening higher, extending those gains into early afternoon, before pulling back into the close.  We continue to lean to the correction camp and expect further downside.  So far it has been more of a sideways affair than lower.
The intra-day divergence we spoke of Tuesday continued into Wednesday’s close.  The O-P made lower lows into yesterday close while the Wave held its gains.   This divergence lead to today’s quick early rally which we warned of.  But the O-P once again acted very lethargic today, and broke hard in afternoon trading, to close lower once again.  Still no strong interest on the upside during the last few weeks of correction.
The Force Index closed unchanged today.  The Force closed at -263.
On Friday, the Technometer will open in a near oversold reading.
 

 
We are still expecting another leg lower for this correction.   We feel this correction will take out the lows at “M” and “O”, and test the lows at “G” and “E”.  The O-P and Force continue in heavy trading, and favors more downside.  The Technometer is nearing oversold but other indications appear to favor the downside.
 

 
Bonds traded sharply lower today, and we are on the sidelines.
Good Trading,
Todd Butterfield