No changes

No change from yesterday. The watch and wait continues as the Wyckoff Wave moved sideways, through the trading range, waiting for ending action.

There are no short-term opportunities in either direction.

Intermediate and long-term bulls should maintain existing positions.

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

Intra-day: Up

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 increased volume. It closed in the upper half of a wider price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest the presence of demand.

A review of the intra-day waves indicates that today was a battle between demand and supply, with supply getting the upper hand.

After a small gap opening to the upside, the Wyckoff Wave reacted to point O. There demand came into the market and the Wyckoff Wave rallied sharply to point P. The intra-day up wave moved the Wyckoff Wave to, and slightly through, the supply line of its intra-day up trend channel.

After a brief reaction, the Wyckoff Wave rallied to point Q. The rally was on reduced price spread and volume. The intra-day up wave was stopped at the trend channel’s supply line. This was a successful intra-day test of the rally to point P.

Once again supply came into the market and the Wyckoff Wave reacted. It made an effort to rally during the last 55 min. of the trading day. That rally was on a lack of demand and, so far, has made little progress.

The Wyckoff Wave encountered supply as tested the intra-day up trend channel supply line. This, and the last hour’s lack of demand, suggest it will react and at least test the channel’s support line.

The Optimism – Pessimism Index reacted. It is in a short-term negative divergence with the Wyckoff Wave when compared with point N. It is in a longer-term negative divergence with the Wyckoff Wave when compared with points D, B, Z and X.

The Force Index reacted and continues to produce moderately negative readings. It is also in a negative divergence, with the Wyckoff Wave, when compared with points N and L.

On Monday, the Technometer will open in a slightly overbought condition.

Today, the Wyckoff Wave continued its advance off the low at point O. As expected, it encountered resistance as it reached the bottom of the sideways movement, marked by points E, C, A, Y and W. It is also marked by the green horizontal line drawn from an earlier support point.

It is interesting to note that the Wyckoff Wave encountered resistance at both this resistance area and the supply line of the intra-day down trend channel.

The Wyckoff Wave remains in the middle of its short-term uptrend channel. The negative O – P Index divergences, the Technometer opening Monday in a slightly overbought condition and the negative divergences with the Force Index continue to suggest the Wyckoff Wave will have a difficult time making progress to the upside.

This suggests that next week will bring an end to the up move, within a trading range. It also suggests the Wyckoff Wave will react and, at least, test the lows at point O.

The Wyckoff Wave continues to move sideways in the developing trading range, as it waits for ending action.

Charts of the Wyckoff Wave are