Trading range still in effect
Wednesday, May 24, 2017
What To Do?
Short Term
Short-term bears should stay short stocks with relative weakness.
Short-term bulls should stand aside but have your buy list ready for purchase.
Intermediate & Long Term:
Intermediate and long term positions to the upside should be maintained.
There are no intermediate or long term opportunities to the downside.
Market Trends:
Intra-day: Up
Short Term: Neutral
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened unchanged and traded basically sideways the rest of the session. Volume was slightly higher today and gave no clues.
The O-P has traded only slightly higher over the course of the last 5 days rally. Still trading very heavy. The Force also is trading at levels it has been stuck at for weeks at -264.
The Technometer is registering a near overbought reading of 47. It did reach 49 at today’s opening.
The S&P 500 and Nasdaq were both up fractional today.
A review of the intra-day waves shows the Wave opening unchanged, then trading slightly lower before recovering into the close. Volume was at normal levels with some late selling coming in.
The O-P continues with its weak performance.
The Force Index closed lower today.
On Thursday, the Technometer will open in an overbought condition.
The Wyckoff Wave did spring the recent trading range last Thursday morning as mentioned. The oversold condition of the Technometer warned us of that possibility. We now have a market that has rallied and returned the Technometer to near overbought. We would expect for this rally to run into resistance because of that, and look to turn down again. This anticipated selloff could be a test of the spring at “S”, or could possibly lead to a break of the bottom of the trading range.
Bonds were up today and nearing overbought. We are still on the sidelines.
For our ProTraders we did make a purchase in the miners today. That market appears oversold and due for a rally.
Good Trading,
Todd Butterfield
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