Short-term short positions should have been closed.

Click Here For Wyckoff Wave Chart 06-16-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term position should have been closed during the morning reaction. My new partner, Todd Butterfield, posted a “cover your shorts” tweet this morning at
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Intermediate & Long Term:

Their are no intermediate or long term opportunities to the upside.

There are no intermediate or long term opportunities to the downside.

Market Trends:

Intra-day: Changed to Neutral.

Short Term: Neutral

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave traded slightly lower, on decreased volume. In fact, it really was an intra-day failure to the downside. It closed near the top of a wider price spread, in a slightly oversold condition relative to the Technometer. The intra-day failure suggests the presence of demand.

A review of the intra-day waves confirms the above. After a wide gap opening and strong follow-through to the downside, supply dried up. The Wyckoff Wave rallied, off point L, for the rest of the trading day.

Today’s market action changes the intra-day trend to neutral.

The rally off point L was on relatively good and sustained demand. Supply returned at point M, but quickly dried up, on the reaction to point N. The Wyckoff Wave continued its rally to a strong close.

The Wyckoff Wave tested the low at point Q and found support. Today’s good demand gives the Wyckoff Wave an opportunity to rally and test the high at point Z.

The Optimism – Pessimism Index reacted slightly. It remains in an overbought position relative to its upward trend channel. In addition, the negative divergence with the Wyckoff Wave, when compared with point V, remains in place.

The Force Index reacted and is producing moderate negative readings. There is now a slight mitigating impact on the slightly oversold Technometer.

Tomorrow, the Technometer will open in a slightly oversold condition.

Today, the Wyckoff Wave tested the halfway point of the rally between points Z and A. The halfway point was respected, as good demand came into the market, and the Wyckoff Wave rallied for most of the day.

Today’s market action suggests the Wyckoff Wave will continue to rally and test the highs at points A and V.

It will be important to watch the quality of the rally back towards point A. While it is expected the test will be successful, the proof will be in the price spread and volume.

Finally, the Force Index is reacting. This relative weakness will have a slight impact on the ability of the Wyckoff Wave to put in a strong rally.