Although there were strong Morning Star signals in the Dow and the S&P 500 yesterday, the T-line still is a critical factor. Numerous short charts showed potential bullish reversal signals yesterday but continue to have a difficult time getting up through the T-line. A very simple analytical tool is requiring a candlestick buy signal and a close above the T-line. Until that combination occurs, the probabilities indicate there has not been a change of the current trend. Today’s trading demonstrates the lack of conviction so far on the Bulls side, still making the T-line a relevant factor.
October 1st Daily Market Comments
Although there were strong Morning Star signals in the Dow and the S&P 500 yesterday, the T-line still is a critical factor. Numerous short charts showed potential bullish reversal signals yesterday but continue to have a difficult time getting up through the T-line. A very simple analytical tool is requiring a candlestick buy signal and a close above the T-line. Until that combination occurs, the probabilities indicate there has not been a change of the current trend. Today’s trading demonstrates the lack of conviction so far on the Bulls side, still making the T-line a relevant factor.