No changes from yesterday

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:  Down, but in a slightly overbought position

Short Term: Neutral.

Intermediate Term: Neutral

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed in the lower half of a wider 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 the presence of supply. Today’s market action was more like an intra-day failure to the upside. After a wide gap opening to the upside, the Wyckoff Wave followed through and rallied to point F. There it encountered supply and reacted for the rest of the trading day. Some demand did return during the last 35 min.

Despite that, in addition to the presence of supply, demand was noticeably absent. The Wyckoff Wave rallied and appeared to have successfully tested the high at point V. It then reacted back into the intra-day down trend channel. Even though it rallied into a slightly overbought position, today’s supply, coupled with a significant lack of demand suggests the Wyckoff Wave will continue to react on Monday.

The Optimism – Pessimism Index rallied slightly. It 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 continues. The longer-term negative divergences with points D, B, Z and X remain in place.

The Force Index reacted and is producing low negative readings.

On Monday, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave attempted to rally back towards the top of the trading range and failed. This suggests it will make another attempt next week to react through point S and continue back into the trading range.

The lack of demand found at the top of the trading range indicates it will be extremely difficult for the Wyckoff Wave to move through that resistance into new high ground.

This suggests the Wyckoff Wave will react. The only question is, when?

The negative divergences with the O-P Index remain in place. The neutral Technometer and loan negative Force Index readings do not support either a rally or reaction scenario.

In situations like this the answers will come from the price spread and volume. So far, the answers indicate the next significant move is down. Only the timing is in question.