No Changes….

Thursday, December 1, 2016
What To Do?
Short Term:
Short-term bears should hold all short positions for the continued reaction.
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: Neutral.
Intermediate Term: Neutral
Long Term: Neutral
**Our Quote Provider had a bad quote this morning so the intra-day chart obviously has a one bar error but I wanted to show anyway**
The stock market, as measured by the Wyckoff Wave, opened higher once again and rallied on good volume for the first hour of the trading session, and made new highs for the recent rally.  It then came off those highs and traded sideways the rest of the day.
The Wyckoff Wave closed up on the day, in a neutral condition relative to the Technometer.  The price spread and volume suggest supply coming into the market still.  Volume has stayed high the last two days while price gains have been small.
The Nasdaq came under considerable pressure again today, and the S&P 500 was minus as well.  This market has become very fragmented over the last few days and weeks.
Our ProTraders are short ORCL which was minus 3.71% today, and Apple minus .93%

A review of the intra-day waves confirms the above.  After a positive opening, the Wave spent the next hour going to another new high for the move.  There was strong volume early in the day as we rallied to the new high.  We then spent the majority of the day declining to the lows of the day.  Then some volume came in the last 15 minutes to rally the Wave once again.  Today was another day of increased volume with minor price gains.  Indicating supply is still present.
The Intra-day Optimism-Pessimism Index is slighly weaker than the Wyckoff Wave .
The Optimism-Pessimism Index basically unchanged today.
The Force Index closed slightly higher today and is still showing moderate negative readings.
On Friday, the Technometer will open in a neutral condition.

 
Today, the Wyckoff Wave opened higher tried to extend its gains and was met with minor selling the rest of the day.  It is still  trying to begin a more important correction to the most recent poor quality advance from point “U” to “V”.  The lack of demand, over the last 10-11 trading days, diminishes the Sign of Strength within the trading range scenario.  Today’s action continues to make the Wyckoff Wave vulnerable to further correction.  The Nasdaq has experienced a 3% correction the last three days and is much weaker than the Wyckoff Wave.
This suggests the Wyckoff Wave will react back towards the bottom of the trading range.
The reduced probability of a successful Sign of Strength also indicates the Wyckoff Wave will not experience a Lack Point of Support on the reaction.  This suggests the Wave is expected to react back to the bottom of the trading range and test the low at point “S” in a normal correction.
The negative divergence with the O-P Index and the overbought Technometer still supports this scenario.  The last few days action suggest that it will be difficult for the Wyckoff Wave to move past the resistance at the top of the trading range.

Good Trading,
Todd Butterfield