Resistance at the top of the trading range

Tuesday, June 6, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.  We added a couple shorts late Friday.
Short-term bulls should stand aside but have your buy list ready for purchase.  We are currently long a few stocks as well for our ProTraders.
Intermediate & Long Term:
Intermediate and long term positions to the upside should be maintained.
There are no intermediate or long term opportunities to the downside.
Market Trends:
Intra-day: Down
Short Term: Neutral
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened lower then continued to work lower throughout the session and closing on the low of the day.  Volume was unchanged from recent days, and showed some supply present once again.
The O-P traded lower today and continues to feel heavy.
The Force Index is trading at -166.
The Technometer was registering a near overbought reading late last week, now trading back to below neutral.
The S&P 500 and Nasdaq were both down fractional today.
 


A review of the intra-day waves shows the Wave opening lower, then spending the day trading sideways before a late bout of selling.
The O-P continues with its weak performance of the last few months.
The Force Index closed lower today after having a sharp rally late last week.
On Wednesday, the Technometer will open slightly below a neutral condition.
 

 
We have been looking for the Wyckoff Wave to work lower for a test of the spring at “S”.   The last two days has provided us with what we was looking for.  We would expect more downside before the Technometer registers oversold.  Lets see how the next few days play out.
This anticipated selloff could be a test of the spring at “S”, or could possibly lead to a break of the bottom of the trading range, which appears to be lower odds at this time.
 

 
Bonds (TLT) were up slightly today and registered a new high for the recent rally.  We are still on the sidelines, but looking to be short.
Good Trading,
Todd Butterfield