No Changes

Click Here For Wyckoff Wave Chart 05-27-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term traders should consider new positions to the downside. If positions have already been taken, they should be maintained.

Intermediate & Long Term:

Intermediate and long-term bulls should maintain existing positions. However, this is a good place to close trades that have reached objectives and eliminate any underperforming positions. Cash should be held in preparation for ending action and a move to the upside.

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

Market Trends:

Intra-day: Changed to Neutral..

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

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed at the top of a narrower price spread, in a clearly overbought 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 very minor gap opening to the upside, the Wyckoff Wave rallied to point L. There, after one intra-day down wave, the Wyckoff Wave rallied and closed at its high for the day. Both intra-day rallies were on a lack of demand.

The Wyckoff Wave made a poor quality attempt to test the highs at points H and J. Today, it was unable to even return to the support line of the intra-day up trend channel.

Today’s market action changes the intra-day trend from up to neutral.

This lack of demand continues the trend and strongly suggests the Wyckoff Wave will react next week and test the lows at points S and D.

The Optimism – Pessimism Index rallied and is in an overbought position relative to its upward trend channel. The negative divergence with the Wyckoff Wave, when compared with points V and X, remains in place.

The Force Index rallied and is producing moderate positive readings. There is a mitigating impact on the clearly overbought Technometer.

On Tuesday, the Technometer will open in an extremely overbought condition.

Today, as traders exited for the longer Morrill day weekend, the Wyckoff Wave continued its attempt to rally on a lack of demand.

The clearly overbought Technometer is a more significant indicator, of a change in direction, than usual. It is a very negative situation when the Technometer moves into an overbought position that is higher than an earlier reading, and the Wyckoff Wave remains at a lower level. This is happened when comparing today’s reading with those at points X and V. The Technometer disparity is not great, but, especially with the relationship to point V, the price is substantially lower.

This suggests it will be extremely difficult for the Wyckoff Wave to continue to rally. However, the reaction may be lessened due to the mitigating impact of the Force Index.

This is in concert with the scenario that the Wyckoff Wave will probably meet support between points Z and U.

The negative divergence with the O – the Index also support the reaction scenario.

This would suggest that once everyone returns from holiday weekend, the Wyckoff Wave may make a definitive move to the downside and return to its short-term down trend channel.