Wyckoff Wave still continuing in this sideways, low volatility range

The Wyckoff Wave opened higher Monday, and then spent the rest of the week trading basically sideways.  Volume was slightly higher this week but still trading average levels.  Our work showed some supply still present.

The Technometer spent the majority of the week trading below neutral near oversold, and closed there.

The S&P was up approximately .75% for the week and the Nasdaq up over 1.5% for the week.

The Wyckoff Wave spent the week trying to put a rally together.  The downtrend line off of supply line “N” is still keeping a lid on prices thus far.  We have been in the correction camp for weeks, and still feel we are in the midst of a correction that has further to go on the downside.

The Optimism – Pessimism Index has continued to show no strong desire to rally the last few weeks.  Beginning at Tuesday’s close the O-P was making new lows while the Wyckoff Wave held its intra-day gains.  We pointed out this slightly bullish divergence in Tuesdays “Pulse Of The Market” update, and Wednesday’s trading just aggravated it more.  We show this divergence below with the two blue arrows.  This divergence lead to Thursday’s quick rally.  Once again Friday’s close had the O-P at another low for the recent down move, while the Wave was holding most of Thursdays rally.   Now as of Sunday evening the markets look sharply higher off of the news from France’s elections.  It will be interesting how this rally holds up into U.S. trading Monday morning.

The Force Index closed lower for the week and is now reading a very negative -298.  This should allow more downside pressure in the days ahead.

The O-P and Force continue to show relative weakness, with the Technometer trading between oversold/neutral

We are still holding short positions and look to cover on a deeper correction.  We are also continuing to look for stocks that are outperforming to the upside, and could lead us higher after this correction has run its course.  Stocks that are having normal reactions, or preferably back up to the creeks.

The bond market was basically flat for the week.  We are standing aside.
We are preparing to raise the price of the Wyckoff Unleashed Online Course back to the original $1200.  We had lowered it until we had numerous students taking the course, and no issues.  That has now occurred so we are going back to original pricing.  You can still purchase at the lower price for a few more hours!!
For those of you who signed up for the Free Trading Techniques Course, we have added two more videos, and at least one more this week will be added for a total of 7 thus far.  Enjoy!!  
Good Trading,

Todd Butterfield

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