Wyckoff Wave Surges To New Highs

Wednesday, March 1, 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 gapped higher today, then extended those gains until a slight pullback in the last hour of trading.   The price spread and volume show some demand present.
The Technometer came off of overbought levels in the last five days back to a neutral reading.  This was enough to allow us to rally strongly today.
The Nasdaq and S&P 500 were both strongly higher today as well.
 


A review of the intra-day waves shows the Wave gap higher, extend those gains, then slight pullback into the close.  The O-P rallied to a new high early today as well, then the last few waves of the day had the strongest down volume in quite a few weeks.  You can see this by the large red bars on the right side of the above chart.
The Force Index closed down today as well and is posting a positive reading of 28.  The Force Index has trended lower for the last week.
On Thursday, the Technometer will open just slightly above neutral.
 

 
Today we finally had the price spread expand, as well as slight increase in volume.  Some of the volume can be attributed to the last hour selloff though.  The Technometer came off of overbought and this was encouraging for the bulls, and was followed by today’s strong rally.  The Technometer is still neutral so we should be able to still work somewhat higher on the Wyckoff Wave.
 

 
Bonds had a sharp correction today, but still holding above important support.
Good Trading,
Todd Butterfield