No changes from yesterday

Click Here For Wyckoff Wave Chart 06-14-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term positions taken to the downside, should be maintained. However, as the Wyckoff Wave may be approaching the end of the reaction, these position should be closely watched

Intermediate & Long Term:

Their are no intermediate or long term opportunities to the upside.

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

Market Trends:

Intra-day: Down, but in an overbought position relative to the trend channel.

Short Term: Neutral

Intermediate Term: Neutral

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

A review of the intra-day waves indicates today was a standoff between demand and supply. After a small gap opening to the downside and a brief 15 min. rally, supply came into the market and the Wyckoff Wave reacted to point H.

There, supply dried up and the Wyckoff Wave rallied for the rest of the trading day.

Although the Wyckoff Wave did advance, both demand and supply were present. After point I, volume increased, but the Wyckoff Wave made little progress to the upside. This suggests that although demand was trying to begin a rally, supply was also present and slowed it down.

Despite that, the Wyckoff Wave did weaken the intra-day down trend channel as it moved into an overbought position relative to that channel. Another indication of relative strength was that the Wyckoff Wave failed to reach the channel’s support line on the reaction to point H.

This may be the beginning of a minor rally to test the high at point Z. However, there could be enough supply to drive the Wyckoff Wave back into its intra-day down trend channel.

While either could happen, the presence of supply is not a positive indication at the start of a rally. This suggests that the Wyckoff Wave will continue to react, or any intra-day rally will not be particularly strong.

The Optimism – Pessimism Index rallied slightly. It remains in an overbought position relative to its upward trend channel. The negative divergence with the Wyckoff Wave when compared with point in the continues.

The Force Index rallied and is producing low positive readings.

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

Today, the Wyckoff Wave continued to show us why the reaction off point A will be relatively shallow and short. The relatively narrow price spread and presence of both demand and supply suggests the Wyckoff Wave is not ready to make a significant move in either direction.

The Wyckoff Wave is reacting back towards the halfway point of the rally from points Z to A. Despite the presence of demand, it appears the Wave still has room to react and test the area of the halfway point.

While the Wyckoff Wave is a negative divergence, with the O – P index, the Technometer and Force Index are not indicating an immediate change in direction.