No New Opportunities

Click Here For Wyckoff Wave Chart 04-27-2016

Short Term:

Their are no short-term opportunities to the upside.

Demand did come into the market and short-term positions to the downside should be closed. If supply returns and the Wyckoff Wave reacts, these aggressive short-term positions to the downside can be reestablished.

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: Up.

Short Term: Neutral.

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, experienced an intra-day failure to the downside. It closed, on increased volume, in the upper quarter of a wider price spread, in a clearly overbought condition relative to the Technometer. The intra-day failure suggests the presence of demand.

A review of the intra-day waves confirms the above. However, once again, demand was not particularly strong and some supply appeared to be coming into the market late in the trading day.

After a small gap opening to the upside the Wyckoff Wave advanced to point K on relatively narrow price spread and volume. Supply came into the market and the Wave reacted sharply to point L. It also tested the support line of the intra-day up trend channel.

The test was successful, demand returned,, and the Wyckoff Wave rallied to point M. After the first intra-day wave, demand was withdrawn and the Wyckoff Wave made little progress to the upside. Some supply returned and the Wyckoff Wave reacted quickly to point N.

Once again, demand returned late in the trading day as the Wyckoff Wave rallied on reasonable price spread and high volume. Look at the two intra-day up waves that followed point N. The first was on good price spread and volume. The second intra-day up wave had a narrower price spread than the first, but extremely high volume. In addition, the wave lasted an hour and 10 min.. Like yesterday it appears supply came into the market late in the trading day.

Yesterday it was mentioned that the Wyckoff Wave needed to put in a strong rally and at least test the intra-day up trend channel supply line. That didn’t happen and, so far, with some supply apparently coming into the market, the Wyckoff Wave is in the middle of the uptrend channel.

This continues to suggest the Wyckoff Wave is vulnerable to react. This expected reaction should noticeably weakened the uptrend channel and test the lows at point F.

The Optimism – Pessimism Index rallied and remains in an overbought position relative to its upward trend channel. It is beginning to lead the Wyckoff Wave. The negative inharmonious action with the Wyckoff Wave, when compared with points DBZ and X remains.

The Force Index reacted, but is still producing positive readings. There is a mitigating impact on the clearly overbought Technometer.

Tomorrow, the Technometer will open in a clearly overbought condition.

Today, the Wyckoff Wave showed that it was not ready to begin the expected reaction. Even though, during the day demand dried up and some supply returned, the Wyckoff Wave continued to advance. However, both yesterday and today’s late market activity indicated some supply was coming into the market. This could be an early indication that the Wyckoff Wave will react.

This observation is sustained by a clearly overbought Technometer. However, the positive Force Index suggests any rally may not be particularly deep. This would give the Wyckoff Wave an opportunity to react back to the top of the trading range. If that reaction is on reduced price spread and volume, it could change the character of this market move. Just something to keep in the back of everyone’s mind.