Wave Continuing Minor Reaction Off Of Highs

Tuesday, March 7, 2017
What To Do?
Short Term
Short-term bears should stand aside or stay short stocks with relative weakness.   We are continuing to hold some shorts as there is many stocks showing relative weakness.
Short-term bulls should stand aside.
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: Down
Short Term: Up
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened lower today, then traded in a narrow range for the majority of the day, and then closed down slightly on the day.  Price and volume show some supply still present.
The Technometer is nearing an oversold reading.  This is because of the continued weakness in the O-P and the Force.
The Nasdaq and S&P 500 were both down approximately .25% today.
 


A review of the intra-day waves shows the Wave opening lower and then trading sideways the rest of the day.  The O-P has continued to stair step lower, providing continued pressure on the Wave.
The Force Index closed down again today and has fallen sharply over the last 10 trading sessions.  It is now at a -233 which is providing pressure on stocks, and negates some of the oversold Technometer.
On Wednesday, the Technometer will open near an oversold reading.

 
Today we continued to give back some of last weeks strong rally on Wednesday.  The O-P and Force has continued to show weakness here so we should see more correction.  The Technometer is becoming oversold quickly as we mentioned on our last update.  But we don’t want to jump to quick, with the Force in a sharp downtrend.
 

 
Bonds were down again today slightly and trading weaker than we expected.  It is trading at the previous support levels and we are watching closely.
Good Trading,
Todd Butterfield