Their are no short-term opportunities to the upside.

Click Here For Wyckoff Wave Chart 04-26-2016

Short Term:

Their are no short-term opportunities to the upside.

Aggressive short-term bears should close their positions, if demand continues tomorrow.

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, traded higher on increased volume. It closed at the top of a narrower price spread, in an overbought condition relative to the Technometer. The price spread and volume suggest the presence of supply.

A review of the intra-day waves indicates today was a demand day. After a gap opening to the upside and a strong, 30 min., follow-through to point I, some supply returned and the Wyckoff Wave reacted to point J. That encompassed the first hour and 35 min. of the trading day.

The Wyckoff Wave spent the rest of the day attempting to rally. The rally was of poor quality until the last wave of the trading day. There, the Wyckoff Wave moved into new high ground on reasonable price spread and good volume.

The intra-day wave that began just after point J was on relatively high volume, but relatively narrow price spread. In addition, the wave lasted for one hour and 25 min. This suggests the presence of some supply.

The Wyckoff Wave continued its poor quality rally until the last intra-day wave, when demand returned.

Since the rally to point Z, on the intra-day chart, the Wyckoff Wave has been unable to reach the supply line of the intra-day up trend channel. Tomorrow is a critical day. The Wyckoff Wave needs to rally strongly and at least test the channel’s supply line. This means that the moderate demand that appeared today, must be sustained and should increase.

If that doesn’t happen, the Wyckoff Wave will be vulnerable to react and weaken the intra-day up trend channel.

The Optimism – Pessimism Index rallied and remains in an overbought position relative to its upward trend channel. The negative inharmonious actions with the Wyckoff Wave, when compared with points D, B, Z and X remain in place.

The Force Index rallied and is producing moderately positive readings. There is a mitigating impact on the overbought Technometer.

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

Today, the Wyckoff Wave continued its advance from point U and put in a new top. The Wave is putting in a poor quality test of Friday’s high and may continue its rally.

The Technometer is in an overbought condition which, despite the strong Force Index readings, suggests it will be difficult for the rally to continue. This is supported by the negative inharmonious action with the O-P Index.

The Wyckoff Wave is also approaching the bottom of the sideways movement that began in November 2014. It would be expected that the Label encounter overhanging supply as it attempts to rally back into that trading range.

The overbought Technometer, coupled with the approaching overhanging supply, suggests the rally is coming to an end and the Wyckoff Wave will react.