Test of upthrust in place…

Tuesday, June 27, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.
Short-term bulls should stand aside but have your buy list ready for purchase.  We are currently holding both long and shorts for our ProTraders.
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: Down
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened slightly lower, and spent the rest of the day stair stepping lower to close at the low of the day.  Volume was slightly higher today, but would like to see this increase if we have experienced an upthrust and test.
The O-P traded lower today.
The Force Index traded slightly lower as well.
The Technometer registered a solidly oversold level today.
The S&P 500 was done .80% with the Nasdaq down a solid 1.60%.
 


A review of the intra-day waves shows the Wave stair stepping lower during the trading session and closing on the lows.
The O-P traded in sympathy with the Wave today and gave no extra clues.
The Force Index is also trending solidly lower here.
On Wednesday, the Technometer will open in an oversold condition.
 

 
We have been expecting the Wyckoff Wave to work back towards the bottom of the recent trading range we have been locked in for months.  With our Wyckoff Tools this still appears the likeliest outcome, and today’s possible test of the previous upthrust helps that prospect.  We should not see the Wyckoff Wave near today’s high if we are going to continue this correction.
With the Wyckoff Wave being extremely oversold, downside progress could be slow to come by.  But at we had mentioned on the “Week In Review” the other Wyckoff Indices like the Wyckoff Wave Growth (WWG) is not oversold and will allow more downside here.
 

 
The TLT had a selloff today as well.  We would expect bonds to catch a bid here if stocks continue their correction.  We are still long but looking to take profits.
Good Trading,
Todd Butterfield