Trading range still in effect

Wednesday, May 31, 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 lower then stair stepped higher the rest of the day to close slightly plus.   Volume was higher today versus the last week or so of holiday type trading.
The O-P traded flat today so no clues on the volume action.  In general it has traded very heavy.
The Force also is trading at levels it has been stuck at for weeks at -223.
The Technometer is registering a near overbought reading of 47.68.  It did reach above 49 at today’s opening.
The S&P 500 and Nasdaq were both down fractional today.
 


A review of the intra-day waves shows the Wave opening lower, then trading higher the rest of the day to close plus.  Volume was back at more normal levels.
The O-P continues with its weak performance of the last few months.
The Force Index closed slightly higher today.
On Thursday, the Technometer will open near an overbought condition.
 

 
We are still looking for the Wyckoff Wave to work lower for a test of the spring at “S”.   For now it has been holding sideways in the middle of the recent range.   The Technometer is trading near overbought so we expect for this rally to run into resistance here.  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 (TLT) were up today and clearly overbought.  We are still on the sidelines but looking to be short.
Good Trading,
Todd Butterfield