Wyckoff Wave In A Narrow Range At The Highs

Tuesday, February 28, 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: Up
Short Term: Up
Intermediate Term: Up
Long Term: Neutral
The stock market, as measured by the Wyckoff Wave opened Tuesday unchanged, then drifted lower for the majority of the day, before trimming the losses at the close.   The price spread and volume shown slight supply present.
The Technometer has came off of overbought levels and now at a reading of 46.   The overbought reading tried to stall the rally, but so far that is all it has accomplished.
The Nasdaq and S&P 500 were both down fractionally today as well.
 

A review of the intra-day waves shows the Wave opening unchanged, with a slight downside bias for the rest of the day.  The O-P has taken a breather the last two days and has traded sideways.
The Force Index closed down today as well and is posting a positive reading of 75.  This is allowing the Wave to continue to push higher.
On Wednesday, the Technometer will open just slightly above neutral.
 

 
The rally of the last two weeks has surprised us, but volume has not increased dramatically nor price spread.  The divergence between the O-P and Wave has been eliminated, but there would still be inharmonious action in place.  With the Technometer coming off of overbought, the Wave has held in a sideways range, which is very encouraging for the bulls.
 

 
Bonds have traded sideways  the last two days, and nothing new to report.
 

Good Trading,
Todd Butterfield