The Wyckoff Wave Trading Range Bound

This past week the Wyckoff Wave started the week trading sharply higher om Monday, a brief correction Tuesday/Wednesday, and then added to the weeks gains with a strong rally to finish the week.  Volume was at decreased levels for the week.

The Technometer began the week at oversold levels, and finished the week near overbought levels.

For the week the S&P was up 3.53%, and the Nasdaq 4.17%.


The Wave is continuing to trade with the range of 51,000-57,000.

The O-P had not rallied at all since the short term lows of Feb 5th.   The recent new low in conjunction with the oversold Technometer lead to last weeks rally as expected.

The Force Index also continues to show slight relative weakness to the Wave and continues to apply slight pressure to the downside.

The Technometer finished the week at overbought levels, showing a vulnerability for the Wave to now once again slow its advance.  Last weeks oversold reading told us to expect a bounce last week as we experienced.

The one year daily chart shows the Wyckoff Wave trading in an uptrend but possibly tiring within the steeper uptrends.  We had felt that we would possibly begin sideways trading action, which has been occuring.   With 57,000 being resistance as mentioned, and 51,000 support.
The Technometer last week told us we needed a corrective rally which we got.  Now with the Technmeter showing an overbought reading we would expect continued sideways action here.  We are coming to an apex….

The Wyckoff Wave Growth Index (WWG) rallied strongly for the week in line with the Wyckoff Wave.  It has penetrated its two most recent highs but with no noticeable increase in volume on the rally.
The Technometer is trading at overbought levels so we do not think this rally will result in a jumping of the previous resistance.  We would expect this market to experience a pullback here.

The bond market traded sideways for the week.  The oversold Technometer has not given us much of a rally off of the lows, only sideways.
TLT is now trading near its supply line of its recent downtrend channel.  We feel this market has lower objectives ahead, so we continue to hold shorts from $125.08.  With the recent new low in the O-P and oversold Technometer we are not going to press our shorts here.  We possibly could see a further minor rally before the larger downtrend reasserts itself.

IMPORTANT ANNOUNCEMENT:  This week we will be launching our “Pulse of The Market” for Cryptocurrrencies.  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 being offered at an affordable $299.99.  We have had 897 students enroll in the last 34 weeks.   
If you are interested in Cryptocurrency news and Wyckoff chart analysis, search “Crypto News” or click this link
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Good Trading,

Todd Butterfield

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