No Changes From Yesterday

Tuesday, September 20, 2016

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What To Do?

Short Term:
Short term bulls, who entered the market, should maintain their positions. There are still opportunities for new positions to the upside.
There are no short-term positions to the downside.

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: Neutral
Short Term: Down, but weakened and in an overbought condition.
Intermediate Term: Neutral
Long Term: Neutral

The stock market, as measured by the Wyckoff Wave experienced an intra-day failure to the upside. It closed, on slightly decreased volume, near the bottom of a narrower price spread, in an oversold condition relative to the Technometer. The intra-day failure suggests a lack of demand.

A review of the intra-day waves indicates today was another lack of supply day.

After a wide gap opening to the upside, demand continued and the Wyckoff Wave put in a 20 min. rally to point Q. After a brief reaction to point R, the Wave rallied and tested point S. The rally was on a lack of demand. The test was completed at point Q, which was slightly lower than point S.

Demand was withdrawn and the Wyckoff Wave put in a long slow reaction, that lasted for the last four hours and 5 min. of the trading day. Except for the last 15 min., the reaction was on a lack of supply.

At the end of the day’s market action the Wyckoff Wave was right back to where it closed on Monday. The market action was the same. The Wyckoff Wave attempted to rally, demand was withdrawn and the Wyckoff Wave reacted on a lack of supply.

Once again the Wyckoff Wave is testing the support line drawn from point L. While the Wyckoff Wave is expected to successfully test that support, it may react down to point D before attempting to rally.

The Optimism – Pessimism Index rallied slightly. It remains in a positive inharmonious action with the Wyckoff Wave when compared with point D.

Tomorrow, the Technometer will open in an oversold condition.

Once again, the Wyckoff Wave attempted to rally off the support and failed. Demand was withdrawn and the Wyckoff Wave reacted back towards the support line drawn from point D..

Like yesterday, today’s market action was on reduced price spread and volume and the intra-day analysis indicated a lack of supply. This continues to suggest the Wyckoff Wave will successfully test the support and rally. The question is simply, when?

Over the past few months the Wyckoff Wave has had a propensity to move sideways. However, the reduction of price spread and volume, over the last couple of days, is a positive indicator. This suggests supply is drying up and the Wyckoff Wave could be ready to rally.

That scenario continues to be supported by the positive inharmonious action with the O-P Index and the oversold Technometer.

Like yesterday, look for the Wyckoff Wave is used to successfully test point D and make another attempt to rally.