The Wyckoff Wave Short Term Correction Beginning?

This past holiday shortened week the Wyckoff Wave traded basically unchanged.  Volume was at holiday levels and the slowest of recent weeks.

The Technometer is trading slightly below the overbought level, after reaching overbought in Thursday’s trading.

For the week the S&P was down .37%, and the Nasdaq .80%.


The Wave spent the week trying to add to previous weeks gains, but encountered selling on the last trading day of the year.

The O-P has not rallied to new highs in the recent weeks and underperforming.

The Force Index continues to show weakness and has not supported the recent rally either.

The Technometer began the week near a neutral reading, but finished the week at overbought.

The one year daily chart shows the Wyckoff Wave trading above the major overbought line of the long term uptrend.  It is also trading at the overbought line of the more recent uptrend marked in light blue.  We had thought recent action had been friendly, but after last weeks action we are now cautious.  With the overbought Technometer, the O-P failing to make new highs with the Wave, as well as the poor performance of the Force, we think a short term correction is beginning now.

The Wyckoff Wave Growth Index (WWG) continues to trade within its recent long term uptrend.  The Growth Index did meet resistance at its previous highs as expected and had traded down for the last two weeks.   We expect this downtrend to continue, but with the Technometer trading close to oversold, we might not experience much selling until the condition is relieved.

The bond market traded higher last week after the previous weeks sharp losses.  This rally has also not been supported by the O-P and Force Index.  We are trading below neutral on the Technometer so we are going to need a little more trading history before we make a call on this market.   Our first instinct is that we are testing the recent highs of  December 15th, and will experience more selling in the weeks ahead.

IMPORTANT ANNOUNCEMENT:  We will be launching our “Pulse of The Market” for Cryptocurrrencies very shortly.  This software will have consolidated volume for the Crypto’s which will be most important when applying Technical Analysis.
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 now being offered at an affordable $299.99.  We have had 844 students enroll in the last 26 weeks.   
We also have a Youtube channel that has now grown quickly to 17,700 subscribers in a matter of months.  If you are interested in Cryptocurrency news and Wyckoff chart analysis, search “CRYPTO NEWS”, subscribe, and click the bell to be notified of our upcoming broadcasts.  Our current schedule is Monday-Friday around 6 p.m. CST and they usually last over one hour, and we just added an approximate 11-12 a.m. broadcast to reach more of our international subscribers. We have subscribers all over the world, so at times we vary broadcasts to try and satisfy international subscribers.  
If you would also like to follow us on twitter for news and trade ideas, follow “WyckoffonCrypto”.   We have given numerous profitable trades to our subscribers on the Youtube channel, as well as Twitter.  
Good Trading,

Todd Butterfield

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