Still a Tale of Two Markets…

Thursday, August 3, 2017
What To Do?
Short Term
This market is very split so we are holding longs and shorts.  Short-term bears should stay short stocks with relative weakness, and bulls should stay long relative strength.
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: Down
Short Term: Neutral
Intermediate Term: Up
Long Term: Up
The stock market, as measured by the Wyckoff Wave opened slightly higher, and spent the rest of the day trading in a narrow range.  Volume was lower today once again.
The O-P traded higher today.
The Force Index traded higher as well.
The Technometer finished the day just below neutral.
The S&P 500 was down .20% with the Nasdaq down .35%.
 


A review of the intra-day waves shows the Wave trading quietly sideways while the O-P traded slightly higher.
The O-P has been much weaker than the Wyckoff Wave over the last few weeks.  As price has went too new highs, the O-P has lagged considerably
The Force Index has also lagged price.
On Friday, the Technometer will open in a neutral condition.
 

 
The Wyckoff Wave has finally performed better to the upside recently.  On a short term basis we could be experiencing a back up to the recent creek, and would see more upside after a successful completion.
 

 
We have been speaking of the split market by discussing the Wyckoff Wave Growth Index (WWG).  This index we had expected to work lower and it has done just that.  We still see more downside in the days ahead here.
 

 
We mentioned in the “Week In Review” that we wanted to see the TLT rally this week so we could enter a short.  It has done just that, and we are probably going to be taking a short here tomorrow on any further strength.  You can see the Technometer is extremely overbought, and should lead to some type of pullback.

Good Trading,
Todd Butterfield