No Changes From Friday

Monday, August 22, 2016

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What To Do?

Short Term:
There are no short-term opportunities to the upside.
Aggressive short-term bears should maintain their positions. They should be closed if strong demand returns.

Intermediate & Long Term:
Their are no intermediate or long term opportunities to the upside.
Long-term positions to the upside should be maintained.
There are no intermediate or long term opportunities to the downside

Market Trends:

Intra-day: Down
Short Term: Neutral
Intermediate Term: Neutral
Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded very slightly lower (six points) on decreased volume. It closed in the middle of a narrower price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest a lack of supply.

A review of the intra-day waves indicates today was more of a lack of demand day.

After a gap opening to the downside and a brief follow-through to point H the Wyckoff Wave put in a poor quality intra-day rally. Then, it reacted briefly to point J and quickly rallied to point K. This all happened in the first hour and 15 min. of the trading day.

The Wyckoff Wave moved sideways for the rest of the trading day.

The Wyckoff Wave had opportunities to rally, but, each time, the demand was of poor quality and certainly not sustained. Although some supply did come into the market it was also not sustained.

The Wyckoff Wave is testing the supply line of its intra-day down trend channel. The day’s poor quality demand suggests the supply line will be respected and the Wyckoff Wave will react and test the intra-day low at point E.

The Optimism – Pessimism Index rallied slightly. It remains in intermediate and long-term harmony with the Wyckoff Wave. It also continues to test the supply line of its upward trend channel.

The Force Index produced positive readings.

Tomorrow, the Technometer will open in a low neutral condition.

Today, the Wyckoff Wave put in a rather uninspired trading day. It’s simply continue to drift sideways.

The Wyckoff Wave’s inability to sustain either supply or demand has resulted in a drift, with a slight bias to the downside, for the last 12 trading days.

Nothing is changed that would suggest the Wyckoff Wave’s next move will be to the upside and to test the area around point F.