Same as yesterday

Click Here For Wyckoff Wave Chart 04-25-2016

Short Term:

Their are no short-term opportunities to the upside.

Aggressive short-term bears can still consider new positions to the downside. The Wyckoff Wave would need to react more and then re-test the highs before lower risk positions to the downside could be considered. There needs to be evidence of some supply.

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, but weakened and in an oversold position.

Short Term: Neutral.

Intermediate Term: Neutral

Neutral

The stock market, as measured by the Wyckoff Wave, traded lower on decreased volume. It closed in the upper half of a wider 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 gap opening to the downside, supply came into the market and the Wyckoff Wave reacted to point F. The reaction also weakened the intra-day up trend channel.

The Wyckoff Wave attempted to rally back into the channel. The rally was on a lack of demand and the Wave was unable to return to that channel. The Wyckoff Wave reacted for the next two hours until the last wave of the trading day. That wave lasted for 40 min. Even though it was the last intra-day wave, which usually has high volume, price spread suggested some supply was coming into the market.

In addition, the reaction from point G to the last intra-day wave was on a lack of demand.

While the Wyckoff Wave will probably make another attempt to return to the uptrend channel, it may not succeed. The inability to reach the channels supply line at points C and E, coupled with the poor quality rally from points F to G, suggests a continued reaction has the highest probability of success.

The Optimism – Pessimism Index rallied and remains in an overbought position relative to its upward trend channel. The negative inharmonious action with points D, B, Z and X remains in place.

The Force Index rallied and is producing positive readings. These positive readings could have an impact on the length and depth of any reaction.

Tomorrow, the Technometer will open in a high neutral condition.

Today, the Wyckoff Wave reacted, but did so on a lack of demand. Once again, supply was not strong or sustained.

This gives the Wyckoff Wave another opportunity to rally and test Friday’s highs. The intra-day market action suggests a test would be successful and the Wyckoff Wave will continue to react. However, until good supply comes into the market and is sustained, it will be difficult for the Wyckoff Wave to put in a strong reaction back into the trading range.

While it appears the Wyckoff Wave can certainly continue to react, it will be extremely important for supply to come into the market and be sustained for more than just a few intra-day waves. Until this happens the Wyckoff Wave could continue its poor quality rally off point U.

If supply comes into the market tomorrow and is sustained there is a reasonable probability the Wyckoff Wave will react back into the trading range.