The Wyckoff Wave Experienced a Sharp Correction

The Wyckoff Wave turned sharply lower as we was expecting.  Volume was slightly higher when compared to the previous rally.
The O-P went to another new low for this correction .
The Force Index was lower for the week.

The Technometer is near an oversold condition.

The OP had made a new low for the recent correction.  It closed on its lows for the week.

There is a small positive divergence when compared to the low on November 23rd.  The OP has made a new low, while price is currently holding above these lows. You can see this on the chart above.

 
We had expected the Wyckoff Wave to test the previous highs at 53,000 last week, and it accomplished this on the opening print last Monday.  We saw this, and alerted followers with a quick Youtube video.  You can view this here if you missed the timely update.  https://youtu.be/iLdj_88459I
From those levels, we saw heavy selling come in to drive the Wave sharply lower for the week.    With the Technometer now quickly approaching oversold, we have to be on the lookout for another short term low.
We still expect some more weakness, before turning friendly.  We did a video late Friday discussing these thoughts.  https://youtu.be/RJrSCl0ttoQ
So lets look for lower prices in the coming week, and be prepared to trade accordingly.

 
The Wyckoff Wave Growth Index (WWG), was lower on the week as well.
Same as the Wyckoff Wave, the Technometer is nearing oversold, so this decline might need to take a breather early in the week.  Lets look for it to move lower and get the Technometer to an oversold reading, and then look at the situation.

 
The bond market traded sharply higher for the week.  We were short and would have liked to have seen further weakness last week with the stocks rallying as expected.  However, when we did the Monday video update, we commented that the Technometer was almost oversold and short positions looked vulnerable.  Later in the day the TLT took out our buy stop and then had a big day up on Tuesday.
The Technometer is not yet overbought here, and we will look for that in the coming days, and will probably then return to short positions.

 
Monday’s we pointed out that Caterpillar was in a precarious situation as it had just experienced a rally back to the ice, and was extremely overbought on the Technometer.  We gave a short recommendation to our ProTraders subscribers as well.  This chart does not look good for the longs…

 
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, LearnCrypto.io   This course is being offered at an affordable $299.99.  We have had 946 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 https://www.youtube.com/channel/UCDxK2PwEDvoaHZgjPV_WgcA
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Good Trading,

Todd Butterfield