Although the markets are not selling off great resiliency today, the fact that the markets close below the T-line on Friday after the Doji day of Thursday provides a strong probability the downtrend is likely to continue. Currently the Dow is used the 50 day moving average as support but also has use the T-line as resistance. Until there is a strong reversal signal and a close backup above the T-line, consider the downtrend in progress. There is a possibility of a trend channel in the NASDAQ, making the May lows as a viable target. The oriented more toward the short side in the portfolio.
June 13th Daily Market Comments
Although the markets are not selling off great resiliency today, the fact that the markets close below the T-line on Friday after the Doji day of Thursday provides a strong probability the downtrend is likely to continue. Currently the Dow is used the 50 day moving average as support but also has use the T-line as resistance. Until there is a strong reversal signal and a close backup above the T-line, consider the downtrend in progress. There is a possibility of a trend channel in the NASDAQ, making the May lows as a viable target. The oriented more toward the short side in the portfolio.