Today’s positive trading is making the T-line relevant for the NASDAQ and the S&P 500, the Dow is currently testing the 50 Day Moving Average. The markets need to close near the high end of the range to indicate Wednesday’s big draw down was merely emotional selling versus a dramatic change of investor sentiment. A close near the top end of today’s trading range is important for illustrating a recovery versus a temporary bounce after a strong sell signal. Based upon the nature of the market for the past three months, a new flat trading range could be developing, as seen in the sideways movement of the markets after a big move one way or the other. This still allows for candlestick patterns to work effectively. Currently there are numerous J-hook Patterns bouncing back up from the T-line.
May 19th Daily Market Comments
Today’s positive trading is making the T-line relevant for the NASDAQ and the S&P 500, the Dow is currently testing the 50 Day Moving Average. The markets need to close near the high end of the range to indicate Wednesday’s big draw down was merely emotional selling versus a dramatic change of investor sentiment. A close near the top end of today’s trading range is important for illustrating a recovery versus a temporary bounce after a strong sell signal. Based upon the nature of the market for the past three months, a new flat trading range could be developing, as seen in the sideways movement of the markets after a big move one way or the other. This still allows for candlestick patterns to work effectively. Currently there are numerous J-hook Patterns bouncing back up from the T-line.