Yesterdays trading showed indecisive trading, Doji type days and inverted hammer days in the indexes. Today’s positive trading shows a good indication that the bottom of the upward trend channel continue to act as support. This implies the trend channel will continue to hold but the nature of the market has not shown any change yet, it still remains a very indecisive trading market day to day.
Be careful, today’s bullish trading may just be the offset of panic selling yesterday afternoon. If the characteristic of this market remains the same, today’s trading should close near the high end of its trading range, continuing the indecisive nature of the markets. Keep in mind, any recommendations/positioning in this market condition requires entry confirmation. The market is telling us something! Obviously, there is no trend. Adjust your trading strategy accordingly. Either very quick trades or go fishing for a few days.