More Sideways to Lower

Tuesday, May 16, 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: Neutral
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened unchanged, then sold off for the rest of the day. Volume was lackluster and showed slight supply present once again.
The O-P is showing no signs of a rally.  The Force has let up some over the last couple weeks but still exerting some downside pull.
The Technometer is registering a slightly above neutral reading.
The S&P 500 was down slightly today with the Nasdaq trading up .33%.
 


A review of the intra-day waves shows the Wave opening unchanged, then selling off for the rest of the trading session.  We are still in the correction camp.  Today’s action looks like we tested the 1/2 point of the recent correction down to “Q”, and might try the downside once again.
The O-P continues with its weak performance on.  The O-P has been locked in a sideways trading range and showing no signs as of yet that it wants to rally.
The Force Index closed slightly higher today.  The Force closed at -184 which is a level that is less negative than it has been for weeks.
On Wednesday, the Technometer will open slightly above a neutral reading.
 

 
We have been expecting still lower prices, and will monitor the selloff closely.
 

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