Still Sideways at Top of Range….

Tuesday, December 20, 2016
What To Do?
Short Term
Short-term bears should stay short and use stops at recent highs if not already stopped out.  A few indices touched new highs today except the S&P 500, NYSE, and Russell 2000.
Short-term bulls stand aside.
Intermediate & Long Term:
Intermediate and 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: Up
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave, opened higher in the first 30 minutes which set the high for the day. Todays actions was the same action as the day before.  Strong opening then spend the rest of the day trading net sideways on lower volume. Volume was slightly lower today then yesterday.
The Wyckoff Wave closed slighlty higher on the day with volume at the low levels of recent days.  The Technometer is once again sitting just above the neutral level.  The price spread and volume once again showed lack of demand today.
The Nasdaq and S&P 500 was both slightly higher as well today.

A review of the intra-day waves confirms the above.  After opening higher on the day, the Wave made its high of the day within the first 30 minutes.  At that point, volume dried up the rest of the day while the Wave fluctuated in a narrow range, and closing slightly higher on the day.   Volume was at the same low levels as Monday.
The Wave today came out of the apex to the upside, but so far the rally was once again on low volume.  Let’s see the follow thru action at these highs.
The Intra-day Optimism-Pessimism Indexwas subdued today, until the last waves of the day.  It has now went to a new  high for the move.
The Optimism-Pessimism Index closed higher.
The Force Index closed slightly higher today.
On Wednesday, the Technometer will open in a high neutral condition once again.

Today, the Wyckoff Wave traded slightly higher on a decrease in volume.  The reaction we have been expecting over the last few weeks has not materialized.  We continue to rally on low volume and extend this rally.  The recent rally to “X” has not had a dramatic increase in spread or volume, and does not appear we had a Jump Across The Creek, but more so a test of the upper end of the trading range. Todays rally still did not change these observations.
This suggests the Wyckoff Wave will react back into the trading range.
The reduced probability of a successful Sign of Strength also indicates the Wyckoff Wave will not experience a Last Point of Support on the reaction.  This suggests the Wave is expected to react back into the trading range and test the previous support at point “W”, “U”, and the more important lows at point “S” in a normal correction.

Good Trading,
Todd Butterfield