More Sideways to Lower

Tuesday, May 9, 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, traded both sides of unchanged and then gave way to a minor selloff into the close. Volume was lackluster and showed slight supply present.
The O-P and Force are in downtrends and finding it hard to rally.
The Technometer is registering a slightly below neutral reading.
The Nasdaq and S&P 500 were basically flat today with the VIX trading at the lowest levels since 1993.
 


A review of the intra-day waves shows the Wave opening slightly lower, then trading sideways with not much movement until a slight selloff into the close.  We are still in the correction camp but want to watch the Wyckoff indicators closely here.
The O-P continues with its weak performance.  Today’s late selloff saw the O-P give up considerable ground, and close once again near the lows of the recent selloff.
The Force Index closed slightly lower today.  The Force closed at -272 which is a level we have been trading at for many weeks.  This level still applies downside pressure to the Wave.
On Wednesday, the Technometer will open slightly below a neutral reading.
 

 
We have been expecting still lower prices, but we are on the lookout for a possible low here in the days ahead.
 

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