The Dow trading down and the NASDAQ trading up indicates there is no change of investor sentiment, the current trend remains in progress. The analysis remains the same, this is a sector specific market. Continue to hold long positions but don’t let backing and filling scare you out of positions. Be sure to use reversal signals as your decision-making process, not merely selling days in uptrends.
A healthy market includes profit-taking days. The question was asked this morning whether the lower open in the Dow was an indication of a major change of investor sentiment. The first analysis still requires assessing which direction the market is moving. An uptrending market requires a strong reversal signal. The magnitude of the premarket futures to the downside today was not an indication that a huge change had occurred. On mornings when the market is pulling back, watch the 10 min. chart. If it eventually stabilizes, the prognosis leans toward merely profit-taking during an uptrend. Obviously, where the market closes today will be an important indication of whether there is beginning to be a chink in the armor. The T-line will be acting as an important technical level.