May be finding bottom of reaction…

Short Term:  Short-term positions to the downside should have been closed. There are no new opportunities.

As demand came into the market today, this was an opportunity to take short term positions to the upside. However, these position should be watched closely, do to the Force Index’s possible mitigating impact on the expected rally.

Intermediate & Long Term:  Intermediate and long-term bulls should maintain existing positions.

There are no intermediate or long term opportunities to the downside.

Intra-day: Down.

Short Term: Neutral

Intermediate Term: Down, but weakened and in an oversold position.

Long Term:  Neutral.

The stock market, as measured by the Wyckoff Wave, traded higher on decreased volume. It closed in the upper half of a slightly narrower price spread, in a low neutral condition relative to the Technometer. The price spread and volume suggest a lack of demand.

A review of the intra-day waves indicates that today was dominated by demand.

After a gap opening to the upside, the Wyckoff Wave briefly reacted to point Y. There strong demand came into the market and the Wyckoff Wave rallied to point Z.

While demand continued to be present, it was gradually withdrawn as the Wyckoff Wave advanced to point A. There, some supply came into the market and the Wyckoff Wave reacted for the last 40 min. of the trading day.

Today’s rally moved the Wyckoff Wave into an overbought position relative to its intra-day down trend channel.

The Wyckoff Wave appears ready to react slightly and perhaps only test the channels supply line. If that test a successful and the rally resumes, the intra-day trend will be changed to either neutral or up.

The Wyckoff Wave was unable to reach the channel’s support line at both points W and Y. This is a positive indication and suggests the Wyckoff Wave will continue to rally.

The Optimism – Pessimism Index rallied. It remains in its upward trend channel. The short-term positive divergence with the Wyckoff Wave when compared with points C, A and Y continue.

The Force Index rallied, but is still producing high negative readings.

Tomorrow, the Technometer will open in a low neutral condition.

Today, the Wyckoff Wave may have found the bottom of the reaction off point D. It appears to be in a position where it can rally within the trading range.

The indications described yesterday continue, except the Technometer has moved into a low neutral condition.

If the Wyckoff Wave continues to rally, it needs to be watched closely as the Force Index’s high negative readings may reduce the length and strength of any rally.

It is also possible the Wyckoff Wave will rally and react to test today’s low, before putting in a more substantial move to the upside. The relatively high volume over the last eight trading days suggests supply was still present. More supply may need to be taken in before the Wyckoff Wave can put in a strong move rally within the trading range.