More Sideways to Lower

Monday, May 1, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.
Short-term bulls should stand aside.  We have a list of stocks that we were watching for purchase but never got the levels that we was looking for on the correction.  We will continue to watch the list on the next pullback.
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: Neutral
Short Term: Up
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened  slightly lower today, rallied back to plus then drifted back to the lows of the day at the close.  Volume was lower today than that of recent days.  Price and volume show some supply present today.
The O-P and Force are in downtrends and finding it hard to rally.
The Technometer is registering a below neutral reading.
The Nasdaq was up .73% today while the S&P 500 was up fractional.
 


A review of the intra-day waves shows the Wave opening slightly lower, rallying into early afternoon, then drifting lower into the close. We have stayed in the correction camp for weeks, and we are continuing to stay there.  We are concerned with the poor performance of the O-P.
The rally of the last week occurred without the O-P confirming which gave us a sell divergence.  Even though this is not the most reliable type, as Effort could come back in and join the price higher.  But today’s action showed just how weak the O-P has been.  It closed at a new low for the recent move.  Usually these type of divergences keep us in a sideways correction mode.
The Force Index closed slightly lower today.  The Force closed at -281 which is a level we have been trading out for many weeks.  This level should exert downside pressure on the Wave.
On Tuesday, the Technometer will open in a below neutral reading.
 

 
It appears we still have more sideways correction in the days ahead to contend with.  We are looking for a retest of the lows at “O”
 

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