The flat trading in the Dow and S&P 500, after the gap up breakout of the Downtrending Channel of last week, implies the sideways consolidation will continue probably until the T-line catches up. The NASDAQ continues to use the 3T-line as a support area, creating a stable uptrend. The transportation index is trading positive so far Today, revealing the lack of any major selling pressure. The lack of any selling pressure is evident when you accumulate the analysis of all the indexes. This makes the candlestick charts still working effectively coming out of patterns, such as the Frypan Bottom and J-hook Patterns. Stay predominantly long but be reactive to any negative news implications coming out of Washington DC that would indicate any major campaign promises not likely to get fulfilled. Currently, investor sentiment still remains relatively positive based upon the expectations that healthcare, tax reductions, and infrastructure spending are going to be resolved.
May 2nd Daily Market Comments
The flat trading in the Dow and S&P 500, after the gap up breakout of the Downtrending Channel of last week, implies the sideways consolidation will continue probably until the T-line catches up. The NASDAQ continues to use the 3T-line as a support area, creating a stable uptrend. The transportation index is trading positive so far Today, revealing the lack of any major selling pressure. The lack of any selling pressure is evident when you accumulate the analysis of all the indexes. This makes the candlestick charts still working effectively coming out of patterns, such as the Frypan Bottom and J-hook Patterns. Stay predominantly long but be reactive to any negative news implications coming out of Washington DC that would indicate any major campaign promises not likely to get fulfilled. Currently, investor sentiment still remains relatively positive based upon the expectations that healthcare, tax reductions, and infrastructure spending are going to be resolved.