No changes…

No change of yesterday. The watch and and wait continues. The market is sending mixed signals as if works its way through the trading range.

There are no short-term opportunities in either direction. The Wyckoff Wave is in the middle of a significant trading range. Any new positions, at this juncture, would have a relatively high risk/reward ratio.

Intermediate and long-term bulls should maintain existing positions.

There are no intermediate or long term opportunities to the downside.

Intra-day: Neutral

Short Term: Up.

Intermediate Term: Down and in an overbought position relative to the trend.

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed near the top of a narrower price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves confirms the above. After a gap opening to the downside, supply remained and the Wyckoff Wave reacted to point J. There it encountered some demand and rallied to point K.

Even though the rally consisted of two relatively strong up waves, demand was being withdrawn. The second intra-day up wave, which ended at point K, was on lower price spread and volume then the first intra-day wave, which began at point J.  In addition the second wave lasted two hours and 40 min.

After a brief reaction off point K, the Wyckoff Wave began to rally again. This time the reduced price spread and volume continue to suggest demand was being withdrawn. The move also appears to be an intra-day test of point K. There is a good probability the test will be successful.

Once again, the Wyckoff Wave was unable to put in a strong rally and return to the intra-day up trend channel. The thrust of the move from point H is reduced significantly. Compare the move from points H to I with the move from point J to K.

This continues to make the Wyckoff Wave vulnerable to a reaction. It is also why the intra-day trend remains neutral.

The Optimism – Pessimism Index rallied. It has returned to harmony with the Wyckoff Wave, when compared with point N. The longer-term negative divergence with the Wave when compared with points D, B, Z and X continue.

The Force Index rallied, but is still producing moderate negative readings.

Tomorrow, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave continued its poor quality advance. The reduced price spread and volume suggest the Wave will have a difficult time reaching the supply line of its new short-term uptrend channel. In addition, it is also a resistance area formed by the lows at points Y, A, C and E.

This dullness is fairly typical of a period of accumulation. It will be important to watch the next reaction. It could be the precursor to significant ending action.

The poor quality rally suggests weaker hands may still be in the market and need to be driven out before a strong move to the upside can begin.