No changes

Their are no short-term opportunities to the upside.

Short-term positions to the downside should be maintained.

Intermediate and long-term bulls should maintain existing positions.

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

Intra-day: Changed to Down

Short Term: Neutral.

Intermediate Term: Neutral

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, traded lower on increased volume. It closed in the upper half of a narrower 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 more of a supply day. After a wide gap opening to the downside, supply remained and the Wyckoff Wave reacted to point C. Then, the Wave moved sideways and made a brief attempt to rally. The rally lasted for one intra-day wave and ended at point D.

Supply returned and the Wyckoff Wave reacted to point E. Then, the Wyckoff Wave rallied for the last 60 min. of the trading day. The rally was of relatively poor quality as shown by the relatively narrow price spread and low volume.

Once again, the overall quality of market demand has been poor.

As the Wyckoff Wave put in new lows at points Y, C and E, the intra-day trend has been changed from neutral to down. The new trend channel has been drawn in red.

Presently, the Wyckoff Wave is testing the low at point Q. Late in the trading day it rallied off that low. So far, the rally is been a poor quality. If that continues, look for the Wyckoff Wave to successfully test the new down trend channel’s supply line and react.

The Optimism – Pessimism Index rallied and remains in an overbought position relative to its upward trend channel. The short-term negative divergence with the Wyckoff Wave, when compared with point R, remains in place. So do the longer-term negative divergences with points D, B, Z and X.

The Force Index rallied and is producing very low negative readings.

Tomorrow, the Technometer will open in a neutral condition.

Today the Wyckoff Wave reacted and tested the low of the sideways movement at point S. The quality of the small rally off today’s low was poor. This places the successful test in jeopardy and give the Wyckoff Wave an opportunity to continue to react.

Regardless, the Wyckoff Wave has shown a recent propensity to move sideways. Therefore, there is always the possibility it could rally and retest the high at point T.

However, with the negative O-P Index divergences and the Technometer moving towards an overbought condition, despite the rallying Force Index, the continued reaction into the trading range scenario still has the highest probability of success.