No changes from yesterday

Click Here For Wyckoff Wave Chart 04-05-2016

Short Term:
Their are no short-term opportunities to the upside.

There are no new short-term opportunities to the downside. Short-term bears who have taken positions should be prepared to close them if strong demand comes into the market on Tuesday.

Intermediate & Long Term:

Intermediate and long-term bulls should maintain existing positions.

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

The stock market, as measured by the Wyckoff Wave, traded lower on increased volume. It closed near the bottom of a slightly wider price spread, in an oversold condition relative to the Technometer. The price spread and volume suggest the presence of supply.

A review of the intra-day waves confirms the above. However, today’s supply, while present, was not overpowering.

After a wide gap opening to the downside, the Wyckoff Wave followed through to point W. Then, it rallied to point X on wide spread, but relatively low volume. This indicated a lack of supply.

At point X supply returned and the Wyckoff Wave reacted to point Y. Then the Waves moved sideways and made a brief attempt to rally. The attempt was short-lived and supply returned for the next hour and 5 min. of the trading day.

The Wyckoff Wave is presently testing the intra-day lows marked by points W and Y. Today’s modest supply gives the Wyckoff Wave another chance to rally and test the highs either at point V or point P.

The Optimism – Pessimism Index reacted and 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 remains in place. So do the longer term negative divergences, with the Wave when compared with points D, B, Z and X.

The Force Index reacted and is producing low negative readings. There is no mitigating impact on the oversold Technometer.

Tomorrow, the Technometer will open in a slightly oversold condition.

Today, the Wyckoff Wave put in a poor quality reaction and is in a position to test the low at point S. Even though, on the rally to point T, the Wyckoff Wave has successfully tested the high at point R, supply has not been strong enough to push the Wyckoff Wave back down into the trading range.

Today’s light to moderate supply, coupled with an oversold Technometer, did not advance the reaction scenario.

The Wyckoff Wave is behaving in a similar manner to its presious market action in the area of point V. This suggests that while the Wyckoff Wave can still encounter supply and react, it may continue to move sideways.

Despite the oversold Technometer, near the top of the trading range, the market action over the past few weeks suggests the Wyckoff Wave will be unable to move into new high ground. This is due to a general lack of demand, since the Wyckoff Wave completed its rally to point R.

The reaction back into the trading range scenario still has the highest probability of success.

On a longer-term basis, the Wyckoff Wave is expected to move sideways until some sort of ending action completes the trading range.

Charts of the Wyckoff Wave are attached