No changes from Tuesday

Their are no short-term opportunities to the upside.

Short-term positions to the downside should be maintained. Short-term bears who have taken positions should be prepared to close them if strong demand comes into the market on Tuesday.

Intermediate and long-term bulls should maintain existing positions.

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

Intra-day: Neutral

Short Term: Neutral.

Intermediate Term: Neutral

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, experienced and intra-day failure to the downside. It closed, on decreased volume, near the top of a wider price spread, in a low neutral condition relative to the Technometer. The intra-day failure suggests a lack of demand.

A review of the intra-day waves confirms the above. After a small gap opening to the downside, supply continued as the Wyckoff Wave reacted to point Z. There, it encountered some demand and rallied to point A. Demand was reducing as the Wave approached point A.

The Wyckoff Wave briefly moved sideways and attempted a second rally. The rally, which consisted of one intra-day up wave, ended at point B. The short duration and low volume confirmed demand had been withdrawn.

Supply returned and the Wyckoff Wave reacted to point C. It then rallied for the last hour and 20 min. of the trading day. Once again, demand was not particularly strong. This capped the Wyckoff Wave from moving past the earlier high at point B.

This continued lack of demand supports the earlier scenario that it will be difficult for the Wyckoff Wave the Wyckoff Wave to move past points V and P into new high ground.

The rally off point Z may not be complete, but there appears to be little room left to the upside.

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

The Force Index reacted slightly, but is still producing low negative readings.

Tomorrow, the Technometer will open in a neutral condition.

Today the Wyckoff Wave reacted and tested the lows at the bottom of the sideways movement that began at point R. While it did rally, demand was weak and the Wyckoff Wave made little progress to the upside.

The Technometer is moving back into a neutral condition. The negative divergences with the O-P Index remain in place. There is no mitigating impact from the Force Index.

All this continues to suggest that while the Wyckoff Wave may test the highs at points T and R, it will not be able to move into new high ground. This suggests the Wave will, at some point, react back into the trading range.

A final note: boring trading ranges are an indication of accumulation.