Take profits on short positions

Their are no short-term opportunities to the upside.

While there may be a bit more room to the downside, short-term positions should be closed and profits taken.

Intermediate and long-term bulls should maintain existing positions.

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

Intra-day: Down.

Short Term: Neutral.

Intermediate Term: Neutral

Long Term:  Neutral

The stock market, as measured by the Wyckoff Wave, traded lower on relatively high, but decreased volume. It closed near the top of a narrower price spread, in a neutral condition relative to the Technometer. The price spread and volume suggest a lack of supply.

A review of the intra-day waves indicates today featured a lack of demand. After a gap opening to the downside supply came into the market and the Wyckoff Wave reacted to point D. This reaction lasted for 1 hour and 45 min.

The Wyckoff Wave spent the rest of the day rallying. Even though it reached the support line of the intra-day down trend channel, the rally was not of particularly good quality.

While the Wyckoff Wave may continue its rally tomorrow, it will probably not make much progress to the upside. Look for the Wave to react and remain in the intra-day down trend channel.

The Optimism – Pessimism Index reacted and remains in a slightly overbought position relative to its upward trend channel. There is a very minor short-term positive divergence with the Wyckoff Wave when compared to point W.  It is also moving into a positive inharmonious action with the Wave when compared with point U.

The Force Index reacted and continues to produce moderately negative readings.

Tomorrow, the Technometer will open in a high neutral condition.

Today, the Wyckoff Wave reacted and, once again, once again ran into support. This continues to suggest the Wyckoff Wave is in the area of the bottom of the reaction off point V.

This scenario is being supported by the developing positive divergences with the O-P Index.

The Wyckoff Wave should put in this minor bottom within the next couple of trading days and begin to rally and test the high at point V.