Take new short term short positions.

Their are no short-term opportunities to the upside.

The overbought Technometer suggests that this is a good opportunity to take new short-term positions to the downside.

Intermediate and long-term bulls should maintain existing positions. At this point portfolio adjustments should have already been made and cash for future trades set aside.

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

Intra-day: Changed to Neutral

Short Term: Neutral.

Intermediate Term: Down and in an overbought position, relative to the trend.

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, traded lower on decreased volume. It closed in the middle of a narrower price spread, in an overbought condition relative to the Technometer. The price spread and volume suggest a lack of supply.

A review of the intra-day waves indicates today was a lack of demand day. After a small upside gap opening to point N, some supply returned and the Wyckoff Wave reacted to point O.

Then, the Wyckoff Wave put in a long 3 hour and 55 min. rally, which ended at point P. The Wave reacted for the remainder of the trading day.

The Wyckoff Wave tried to reenter the intra-day up trend channel twice at points N and P. Both attempts were unsuccessful. While the long rally from point O to point P was on relatively wide price spread and good volume, the length of the rally suggested a drying up of demand. This was confirmed when, for the second time, the Wyckoff Wave was unable to reenter its up trend channel.

This failure changed the intra-day trend to neutral. If the Wyckoff Wave reacts below point M, which is a reasonable assumption, the intra-day trend will change to down.

The Optimism – Pessimism Index rallied slightly. It is in a very short-term negative divergence with the Wyckoff Wave when compared with point R. The negative long-term divergences with the Wave, when compared with the top of the trading range, remain in place.

The Force Index reacted slightly and is producing moderate negative readings. There is no mitigating impact on the overbought Technometer.

Tomorrow, the Technometer will open in a clearly overbought condition.

Today’s lack of demand strongly suggests the test of point R will be successful and the Wyckoff Wave will react back into the trading range.

When the Technometer moved into an overbought condition, the Wyckoff tools were aligned. The O – P Index and Technometer suggest the Wave will react. The relatively weak Force Index is not in a position to hinder the expected reaction.