More Sideways to Lower

Wednesday, May 3, 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, then spent the day in a lackluster trading range to close slightly lower.  Volume was lower today and showed slight supply present.
The O-P and Force are in downtrends and finding it hard to rally.
The Technometer is registering an oversold/neutral reading.
The Nasdaq and S&P 500 was down fractional today.
 


A review of the intra-day waves shows the Wave opening slightly lower, then trading sideways with not much movement.  We have stayed in the correction camp for weeks, but we must be careful here as the Technometer is getting close to oversold.
The recent weak action of the O-P has gotten the Technometer closer to oversold.  We have had continued downside volume, but so far the Wave has held up.  This action should be watched closely here.
The Force Index closed slightly lower today.  The Force closed at -274 which is a level we have been trading at for many weeks.  This level still applies downside pressure to the Wave.
On Thursday, the Technometer will open in a near oversold reading.
 

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

 
This last chart of the Wyckoff Wave New, which includes a few of the strong Nasdaq stocks which gives me reservation on being friendly here on the markets.  You can see that price has continued to touch new highs while the O-P has traded sideways, while the Force has lagged considerably.  Now the Technometer is registering an overbought reading at the blue circle.  All signs that this index could be tired….
 

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