Trading range still in effect…

This past week the Wyckoff Wave closed almost unchanged for the week.  Volume was at normal average levels and gave no clues.

The Technometer is trading at neutral levels at Friday’s close.

The S&P was down approximately .3% for the week and the Nasdaq was down 1.55% after a sharp reversal Friday.

The Wave began the week with the selloff we was expecting off of the top of the resistance of the recent trading range.  It then rallied back to recover those losses late in the week.  No change in our analysis.  We still expect further weakness to test the bottom of the range.

The O-P gave no new clues this week as it traded in lockstep with the Wave.

The Force Index closed the week at -82, which provides no major clues.

No changes in our positioning for the week.  We have a few shorts on and expect a pullback from these levels.  We are still holding shorts of weak performing stocks, and also holding a few longs on outperforming stocks.   We would continue to look for stocks that are outperforming to the upside, and could lead us higher after this correction has run its course.

The bond market experienced a selloff for the week and we was not able to enter a low risk position as we hoped.   The TLT Technometer is now at oversold levels so we expect a bounce from Friday’s close of $124.40.
Good Trading,

Todd Butterfield

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