The Wyckoff Wave traded sideways for the week, which we had called for. We thought we would have some backing and filling and a test of the low. Thus far the test has held at much higher levels.
Our Technometer readings have now begun to get more friendly with readings of 40, which 38 is oversold. With that in mind we are looking for a short term low this week.
As you can see from the 1st chart above of the Wyckoff Wave we show the downtrend channel, and us holding above it. I have also marked with arrows a bullish divergence, where the OP has went to new lows while price is holding. This shows selling with accumulation, which could be an early sign we are under accumulation as expected….
The Wyckoff Wave Growth Index (WWG) traded slightly lower as well.
With a Technometer at neutral, it would also allow some further strength here if we get a buy signal from our Wyckoff Wave.
The SPY finished the week lower as well. We have the same divergence here as the 1st chart of the Wyckoff Wave. You can see the OP hitting new lows last week while price is holding still higher. This is positive action as we are also at the supply line of the downtrend. If we can break this downtrend we should able to see a nice rally.
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The bond market closed slightly higher for the week.
Our Technometer was near overbought levels last week (as marked in red), and now we are quickly back to oversold levels (as marked in green). This type of action is normally very bullish.
You can see the OP here did not rally last two weeks while price did, thus how we quickly got an oversold Technometer Friday when the OP was nearing the lows when the price before was at $138.
The GDX finished the week slightly higher as well.
Our Technometer has been near oversold the last few weeks and allowed us to rally to the $26 level as mentioned previous. The rally was stopped at the creek of the former trading range, which is natural area to see resistance. We wanted to enter short positions, but never pulled the trigger. We now have an oversold Technometer, so we must stand aside.
The long dollar ETF, UUP was up for the week.
We wanted to see some more testing on the downside for our backup, and with our Technometer now at overbought levels we could still see some additional downside tests.
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