May 3rd Daily Market Comments

Today’s lower open in the NASDAQ after Yesterday’s hanging man signal in the overbought condition illustrates the area of profit-taking in the NASDAQ trend. The Dow and S&P 500 are trading lower but in decisively, Doji type days. The T-line remains a relevant factor, both for analyzing the market trend as well as individual stock moves. FUEL illustrates a J-hook pattern using the T-line as support. Our recommendation on LNTH based upon the Doji Sandwich breakout had a potential sell signal Yesterday but did not close below the T-line. As can be seen, Today’s trend kicker signal clearly indicates much more upside. The combination of identifying  signals and patterns in conjunction with the T-line dramatically improves Price/Trend Analysis. The Dow and S&P 500, trading indecisively above the T-line, produces greater probabilities the uptrend remains in progress until a close below the T-line reveals a change of investor sentiment.

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