Tale of Two Markets

Todd Butterfield Week In Review 0 Comments

**WE HAVE BEEN EXPERIENCING ISSUES WITH OUR WEBSITE SO WE APOLOGIZE FOR LACK OF UPDATES.  WEEK IN REVIEWS HAVE BEEN POSTED TO OUR WEBSITE WHEN WE COULD NOT GET THEM EMAILED OUT TO SUBSCRIBERS. ALL KNOWN ISSUES ARE NOW FIXED**

This past week the Wyckoff Wave was higher.  The Wyckoff Wave finally broke through the resistance at 46,000 and closed firm.  The majority of the strength came from Boeing.   For the week, price and volume showed demand present.

The Technometer is trading at neutral.

The S&P was flat for the week and the Nasdaq down a slight .2%.

The Wave began the week with a minor pullback Monday, then got into high gear and jumped the resistance at 46,000 and closed nicely higher for the week.  Volume increased slightly from the weak before.

As you can see from the chart below, the O-P did not join in the parade, and trended sideways all week, and closed lower for the week.  This is a negative divergence between price/O-P.

The Force Index was also sideways for the weak and shows a considerable divergence on the daily charts.

 

The components of the Wyckoff Wave are showing extremely different performance.  Boeing has been amazingly strong, while a stock like GE continues to perform horribly.  We are still short GE and expect lower prices.

We are also short the QQQ and it responded with some selling coming into the market Thursday.   We expect this market to continue to display weakness.

 

The Wyckoff Wave Growth Index (WWG) did meet resistance at the overbought line of the uptrend as expected, and has began a reaction to probably the support line once again.

 

The bond market declined last week.  We have been wanting to be short, but our indicators did not allow us to take a position.  We would like to see a rally this week to be able to still enter shorts.  The Technometer should register overbought quickly if we get a rally this week.

 

 

Good Trading,

Todd Butterfield

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