The Wyckoff Wave recovered last week as we was expecting. Volume did not increase on the rally, but did have nice five day push higher.
The O-P was also higher for the week.
The Force Index was up sharply for the week.
The Technometer is near an overbought condition.
The OP had made a new low for the recent correction coming into the week, which we pointed out was a bullish divergence. It did recover nicely on last weeks rally and now moving in lockstep, as you can see from the chart below.
We had expected the Wyckoff Wave to turn higher last week as we were at the levels of the Spring, and actually had another spring and small test coming in to last Friday that we pointed out. This lead to last weeks recovery in price as we rallied every day.
With the Technometer now approaching overbought levels, we need to monitor if we can reach the resistance at 53,000 on the chart below, where we had a sell signal three weeks ago. It appears we will just get a test of that area, and not a penetration of the resistance.
The Wyckoff Wave Growth Index (WWG), was higher on the week as well. We pointed out the oversold Technometer reading last week and expected the bounce we got.
Same as the Wyckoff Wave, the Technometer is nearing overbought, so this rally might need to take a breather early in the week.
The bond market traded slightly higher for the week. We are short and would have liked to have seen further weakness last week with the stocks rallying as expected.
The Technometer was extreme overbought and now quickly back below neutral. We have a close stop, and will stay short for the time being.
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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