Short term traders can still consider new positions to the downside.

Click Here For Wyckoff Wave Chart 06-01-2016

Short Term:

Their are no short-term opportunities to the upside.

Short-term traders can continue to consider new positions to the downside. If positions have already been taken, they should be maintained. However, any positions taken should be closely watched, as the reaction may not be particularly long or deep.

Intermediate & Long Term:

Intermediate and long-term bulls should maintain existing positions. However, this is a good place to close trades that have reached objectives and eliminate any underperforming positions. Cash should be held in preparation for ending action and a move to the upside.

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

Market Trends:

Intra-day: Neutral..

Short Term: Down and in an overbought position relative to the trend

Intermediate Term: Neutral

Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, experienced and intra-day failure to the downside. It closed, on decreased volume, near the top of a narrower price spread, in an overbought position relative to the Technometer. The intra-day failure suggests a lack of supply.

A review of the intra-day waves suggests today was a lack of demand day. After a wide gap opening to the downside, supply entered the market and the Wyckoff Wave reacted to point O. That first intra-day wave lasted for 10 min. Then, the Wyckoff Wave spent the rest of the trading day in a poor quality rally.

The intra-day wave that ended at point P have the highest volume of the trading day and a decent price spread. However, it lasted for 60 min. This would suggest little demand was present as the Wave attempted to continue the intra-day rally.

The Wyckoff Wave continues its attempt to test yesterday’s high at point L. The lack of strong demand off point O continues to suggest the test will be successful and the Wyckoff Wave will react.

The Optimism – Pessimism Index rallied slightly. It remains in an overbought position relative to its upward trend channel. The negative divergences with points X and V continue.

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

Tomorrow, the Technometer will open in an overbought condition.

Today, the Wyckoff Wave attempted to continue its reaction. Instead, after experiencing some initial supply, it put in a poor quality rally. Today’s lack of demand continues to suggest the Wyckoff Wave will react and return to its short-term down trend channel.

Nothing in the price spread and volume analysis or the indications from the Wyckoff tools have changed from yesterday.

It is important to notice the effect the Force Index is having on the waves inability to put in a strong reaction. This is one reason why the reaction is expected to and in the area between the support line drawn from point T and the earlier lows at points U and S.