The Sideways Move Continues

Wednesday, July 19, 2016

Click here to open the attached chart

What To Do?

No Changes – Watch and Wait

Short Term:
There are no short-term opportunities to the upside.
There are no short-term opportunities to the downside.

Intermediate & Long Term:
Their are no intermediate or long term opportunities to the upside.
Long-term positions to the upside should be maintained.
There are no intermediate or long term opportunities to the downside.

Market Trends:

Intra-day: Neutral
Short Term: Neutral
Intermediate Term: Neutral
Long Term: Neutral

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed in the upper half of a narrower price spread, in a low 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.

Due to some programming issues, the intra-day chart is not available in its normal five-minute presentation. This should be corrected tomorrow. Fortunately, today’s market action can be discussed in the attached line chart that displays the Wyckoff Wave in one hour increments.

After a gap opening to the downside and a brief follow-through to point Q, the Wyckoff Wave rallied to point R. This all took place in the first 90 min. of the trading day.

Then, the Wyckoff Wave moved sideways, in a narrow range, for the last five hours of the trading day. Some supply did come in as the afternoon unfolded. This is shown by the sideways movement on the line chart and an increase in the last three volume bars.

The Wyckoff Wave continues in its intra-day trading range. Nothing happened today that would change yesterday’s observation, that the trading range appears to have more of the characteristics of distribution and accumulation.

The Optimism – Pessimism Index reacted. It continues to test the supply line of its upward trend channel. The O – P Index remains in harmony with the Wyckoff Wave.

The Force Index reacted and is still producing positive readings.

Tomorrow, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave continued to move sideways in a relatively narrow intra-day trading range. Nothing in today’s market action changes yesterday’s report. The inability of the Wave to continue its rally off point D, which is resulting in a “rolling over”, suggests the Wyckoff Wave will react back to and possibly through the top of the trading range. The top of the trading range is marked by the horizontal line drawn from point C.

Neither the Technometer or Force Index are providing any clues as to the markets future direction. Regardless, the inability continue to rally, at this rather significant point, suggests a reaction is in the near future.