The market indexes continue to toy with the lower channel support level. Today's gap down in the Dow after a Doji yesterday showing failure at the T-line reveals more bearish pressure, the possibility of a bearish J-hook pattern that would take the Dow down through the support level. Until there is a definite change of the sideways trend channel in the indexes, any existing positions, either long or short, can be maintained as long as they are not breaching their T-line trends. But this is probably not a market condition to be adding new long positions or short positions yet. Be patient, the market will provide trend information soon. Offsetting the Dow's Doji gap down will require strength with Today's trading closing near the top end of the trading range.
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Although the markets have been trading positive Today, numerous stock charts have not been showing any great strength, actually trading lower. The indexes are still demonstrating the downtrending T-line continues to act as a viable factor. The prognosis remains the same, any existing positions should have good compelling bullish or bearish chart patterns. This market still does not have overwhelming bullish or bearish sentiment, sideways.
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Today's positive trading indicates the lack of overpowering selling sentiment. The support level that has been established in the indexes over the past couple of months remains intact. However, the relevancy of Today's positive trading requires the bullish strength to maintain going into the close. Obviously, if the markets start selling off again, the downtrend resistance level of the T-line will remain a major factor. Any long positions established today require strength being maintained going into the close. Watch the T-line. … [Read More...]
Although the markets are trading higher today, they are trading well below where they opened. The Dow actually touched the T-line at its highs so far Today and backed off from that level. It will remain imperative that the indexes remain positive. If they start trading back below yesterday's close, the T-line is still acting as the down trending factor. Any long positions being held should have very compelling chart patterns. … [Read More...]
The markets early morning selling has put the indexes testing the support levels and the lows of October. Until there is an observed candlestick reversal signal and the confirmation of the indexes closing backup above the T-line, it has to be assumed the downtrend remains in progress. Short positions should be maintained and long positions should have very compelling reasons to stay long. NUGT is indicating the gold sector is still maintaining strength. Until the indexes reveal whether they are going to support in this area, establishing new positions should be held off until a definite market direction can be identified. … [Read More...]
December 14th Daily Market Comments
The market indexes continue to toy with the lower channel support level. Today's gap down in the Dow after a Doji yesterday showing failure at the T-line reveals more bearish pressure, the possibility of a bearish J-hook pattern that would take the Dow down through the support level. Until there is a definite change of the sideways trend channel in the indexes, any existing positions, either long or short, can be maintained as long as they are not breaching their T-line trends. But this is probably not a market condition to be adding new long positions or short positions yet. Be patient, the market will provide trend information soon. Offsetting the Dow's Doji gap down will require strength with Today's trading closing near the top end of the trading range. … [Read More...]