Wyckoff Wave Falls Off Of New Highs

Todd Butterfield Market Opinion-Free 0 Comments

Thursday, March 2, 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.

*We had been short Caterpillar (CAT) for our ProTraders as it was showing considerable underperformance versus the Wyckoff Wave’s recent rally.  We should have been stopped out with losses last two weeks, as we have with some short positions, but our stop held in CAT. Today FBI agents visit the company and stock down 4.28%. Obviously this was leaked over the last week, as that is why the stock was acting so poorly.

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: Up
Short Term: Up
Intermediate Term: Up
Long Term: Neutral

The stock market, as measured by the Wyckoff Wave opened lower today, then continued the reaction all the way to the close.  First time in a few weeks where we saw this type of action.  Volume was lower than yesterday and showed some supply present today.

The Technometer is back to a neutral reading as the O-P and Force has been in a downtrend the last 4 days.

The Nasdaq and S&P 500 were both down approximately .75% today.


A review of the intra-day waves shows the Wave opened lower and continued to sell off the rest of the day.  Yesterdays late volume surge on the selloff, appeared to give us the ammunition to continue the selling today.  The O-P did not participate in yesterdays late rally, and trended down today as well.

The Force Index closed down sharply today and is now posting a negative reading of -84.

On Friday, the Technometer will open in a neutral reading.


Today we erased some of Wednesday’s strong gains.  The O-P and Force has shown some weakness here so we should see more correction. The Technometer should become oversold very quickly on any selloff.  We will be watching that closely.



Bonds were down again today and touched the lows of the previous week.  We are wanting to stay long for a few more days to see how bonds act off of this support.

Good Trading,

Todd Butterfield

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