Selling Coming In

This past week the Wyckoff Wave was lower.  The Wyckoff Wave continued backing up to the recently jumped resistance.   It did this on slightly lower volume.   For the week, price and volume suggests some supply present.

The Technometer is trading oversold.

The S&P was down 1.41% for the week while the Nasdaq was down 1.5%.

The Wave began the week with a a slight rally but succumbed to selling on Thursday which drove it thru the previous weeks low.  Friday we had a slight recovery to end the week.  Volume was steady from the week before.

The O-P continues to trade lower and took out the previous week’s low as well.

The Force Index was sideways for the week, which it has been for many weeks.

 
On the longer term chart below it is concerning that we could not rally to the recent overbought line of the uptrend.  With the Wyckoff Wave being oversold currently on the Technometer, and a backing up to the recent creek, we should get another chance to rally.  Lets see how this rally looks if it takes hold.
 

 
The Wyckoff Wave Growth Index (WWG) continued its correction to the support line of the uptrend.  The Technometer is neutral so we don’t expect this market to be as strong on any rally.
 

 
The bond market did rally further this week and we took it as an opportunity to enter partial shorts on TLT.  We expect this market to turn lower.
 

 
Good Trading,

Todd Butterfield