Still No Demand

Monday, July 11, 2016

What To Do?

Watch and Wait

Click here to open the attached charts

Short Term:
Their 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.

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 middle of a narrower 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 wide gap opening to the upside, the Wyckoff Wave continued to rally to point Y, on the intra-day line chart. There it encountered supply and the Wyckoff Wave reacted for the last 2 hours and 20 min. of the trading day.

With the exception of the gap opening, the poor quality of the days market action, once again prevented the Wyckoff Wave from returning to its intra-day up trend channel.

The Wyckoff Wave actually closed at a lower level than its price at the gap opening.

Today’s inability to rally and the afternoon supply suggests the Wyckoff Wave is vulnerable to react. The expected reaction should allow the Wyckoff Wave to test the lows at point G.

The Optimism – Pessimism Index rallied slightly and remains in harmony with the Wyckoff Wave.

The Force Index rallied and continues to produce positive readings.

Tomorrow, the Technometer will open in a neutral condition.

Today, the Wyckoff Wave continued its advance off the lows at point D. The rally took the Wyckoff Wave slightly higher as it attempted to move through the resistance at the top of the trading range.

At a time when strong demand needed to come into the market, today’s market action was on a lack of demand. The lack of demand and the late supply that came into the market, continue to suggest that the Wyckoff Wave will react back into the trading range and test the low at point D.

The Wyckoff Wave need to “go and go now”. So far, that hasn’t happened and with today’s failure, the success of that scenario has been considerably reduced

Today’s lack of demand also suggests that we are not seeing an upthrust. If today’s market action was an upthrust, there would have been higher volume and a lower close.

What it does indicate is that the Wyckoff Wave is simply found a slightly higher top in the long trading range that began last August, at point Q.

Nothing is happen so far that would indicate the trading range is coming to an end. The Wyckoff Wave should react and continue to move sideways.