The Wyckoff Wave correcting back into the range….

The Wyckoff Wave traded lower for the week and corrected recent gains.  Volume was slightly higher for the week on the pullback.
The O-P collapsed for the week and broke to new lows.
The Force Index was also down sharply for the week.

The Technometer is trading in an oversold condition.


We have been discussing over and over, how the OP has not acted well on the recent rallies.   This week saw the OP collapse to new lows for the recent months.  Now that the Wave is oversold, it will be interesting to see how the OP acts if we correct last weeks decline in the Wave.

The one year daily chart shows the Wyckoff Wave trading in an uptrend on an intermediate term basis.  Last weeks rally got the Wave to its overbought line of the small dotted blue uptrend.  It met resistance as expected and corrected for the week.
It also upthrusted the recent purple trading range resistance level.  If it was an upthrust we would like to see further downside action, before we test the upthrust.  Volume was slightly increased on the last four days correction, so we will need to see how volume acts on the test.  With the oversold Technometer it would appear we will not fall much before trying to test the upthrust.
We could also just continue to spend more time in the recent trading range and work lower from here for the next few weeks.
We had thought last week that the rally to the resistance line of the purple uptrend would only be a test of the range, and not a jump across the creek forming.   We still believe it is a test of the resistance, or a possible upthrust, and we will see more sideways/down action, and not acceleration to the upside.

The Wyckoff Wave Growth Index (WWG) traded higher for the week as expected.  The WWG had broken its blue uptrend, then tested it, and we was looking for further downside action once the oversold Technometer was relieved.
The Technometer is once again nearing overbought, and any further rally next week should get us there.  We would expect this market to try the downside once again after that point.
Continue to hold shorts and trail stops.

The bond market traded slightly higher for the week as called for.  The Technometer was deeply oversold last week, and we was expecting a rally to relieve the condition.  We have had a slight upward correction but the Technometer is still oversold.   Friday’s action looked bearish, but we would probably still expect more sideways action before another round of selling to new lows for the TLT.
Stay short and trail stops.

IMPORTANT ANNOUNCEMENT:  Our “Pulse of The Market” charting software for Cryptocurrrencies is now working.  This software has consolidated volume for the Crypto’s which is utmost important when applying Wyckoff Technical Analysis.   We are showing this software in use on our social media sites.
Due to the demand for Bitcoin/Cryptocurrency information and trading knowledge, we released a Cryptocurrency and Wyckoff Trading Course at our site,   This course is being offered at an affordable $299.99.  We have had 941 students enroll since its launch on June 22, 2017.   On June 28th we added lessons detailing the OP, Force, and Technometer and how to use these Wyckoff Tools for analysis.
If you are interested in Wyckoff stock chart analysis as well as Crptocurrency, search “Learn Crypto / Wyckoff SMI” or click this link
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Good Trading,

Todd Butterfield

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