More Dull Sideways

Tuesday, April 18, 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: Down
Short Term: Down
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened Tuesday unchanged, then traded both sides of unchanged until closing slightly lower.   Volume increased slightly today from previous days.  Supply is still present.
The O-P and Force are in downtrends.
The Technometer is registering a slightly below neutral reading.
The Nasdaq and S&P 500 were down fractional today.
 


A review of the intra-day waves shows the Wave opening unchanged, then trading sideways the rest of the day and closing fractionally lower.  We have stayed bearish for what seems like weeks, and we feel that we are still in the midst of a correction.  So far it has been more sideways than lower.
The O-P closed lower again today as well.  The O-P broke to new lows today for the recent down move.   It appears there is no major interest in the upside, and we can continue to correct from here.  Today’s new low in the O-P was not joined by the Wyckoff Wave, so we might have a slightly higher rally in the Wave before we continue lower.
The Force Index closed slightly higher.  The Force closed at -225 today.
On Wednesday, the Technometer will open in a below neutral reading.
 

 
We are still expecting another leg lower for this correction.   We feel this correction will take out the lows at “M”, and test the lows at “G” and “E”.  The O-P and Force continue in downtrends, and favors more downside.  The Technometer is below neutral but allows for more downside in the days ahead.
 

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