No changes…

Click Here For Wyckoff Wave Chart 01-26-2016

No changes from yesterday.

Short Term:

There are no opportunities to the downside

While Short-term bulls could continue to consider new opportunities to the upside, it might be best to wait for a successful test of the trading range lows.

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: Down, but weakened.

Short Term: Down

Intermediate Term: Down, but weakened and in an oversold position.

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed near the top of a slightly narrower price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves confirms the above. After a small gap opening to the upside the Wyckoff Wave spent the next four hours rallying to point S. With the exception of one strong intra-day up wave, the rally featured a lack of demand. Demand was withdrawn at point S and the Wyckoff Wave reacted to point T.

That reaction suggested a lack of supply. Then, some demand returned and the Wave rallied for the last 50 min. of the trading day.

On the rally to point S the Wyckoff Wave weakened its short-term down trend channel. The reaction to point T has held at the channels supply line. If the Wyckoff Wave is able to continue its rally tomorrow, the intra-day trend will be changed to up.

Despite the positive news relating to the trend channel, the relative weakness of the rally to point S suggests the Wyckoff Wave may react and test the low at point N.

Conversely, the drying up of supply, on the reaction to point T, is a positive action.

The intra-day reaction scenario has a higher probability of success. This is because the overall poor quality of the rallies from point H.

The Optimism – Pessimism Index rallied and is at the support line of its upward trend channel. It is now in a positive inharmonious action when compared with the Wyckoff Wave at points U and Q.

The Force Index rallied, but is still producing high negative readings.

Tomorrow, the Technometer will open in a neutral condition

Today, the Wyckoff Wave put in a minor rally and is presently testing the supply line of its short-term down trend channel.

Today’s poor quality rally suggests the test of the low at point G has not yet been completed.

The reduction of volume over the last five trading days does suggest some supply was being removed from the market. This gives credence to a successful test of point G.

As mentioned previously, the positive in harmonious actions of the O – P Index, when compared with the Wyckoff Wave, continue to indicate lack of effort to the downside.

This suggests it will be difficult for the Wyckoff Wave to move into new low ground.

Conversely, the very negative Force Index should continue to have an impact on the strength of any rally.

While the Wyckoff Wave may continue to rally and weaken its short-term down trend channel, it still appears a minor reaction and a test of point G is the scenario with the highest probability of success.

Charts of the Wyckoff Wave are attached.