Although the indexes are trading positive today, they are currently trading below where they opened. This indicates the lack of any dramatic bullish sentiment, merely a bounce. However, the transportation index is maintaining strength today after the inverted hammer/Harami at the T-line yesterday. Today's positive trading is bringing that index backup above the T-line. The prognosis remains the same, assume the downtrend in the markets remains in progress until there is a candlestick reversal signal and a close backup above the T-line. … [Read More...]
Yesterday's Doji in the overbought conditions of the market indexes implied that a lower open Today would indicate profit-taking has started. It appears as if the 3T-line has acted as the pullback support for the Dow and S&P 500, the NASDAQ is use the T-line as a support. If the indexes use those levels as support, it can be assumed that today is merely a profit-taking day versus any major change of investor sentiment in the overall market trend. Stay predominantly long as long as the indexes do not always sudden fall out of bed. Obviously, any long positions recommended today should not be executed until they demonstrate bullish confirmation. … [Read More...]
The elections apparently did not surprise anybody, the bullish direction of the markets continue. Keep watch! The Dow is currently trading at the 50 day moving average and the NASDAQ is trading up to the 200 day moving average. These levels need to be watched carefully as potential resistance levels. However, the S&P 500 has gapped through the 200 day moving average making the 50 day moving average a likely target. Obviously the bullish sentiment has come back into the markets. The doubt of the midterm elections are now out-of-the-way. Stay long until the appearance of reversal signals. … [Read More...]
November 14th Daily Market Comments
Although the indexes are trading positive today, they are currently trading below where they opened. This indicates the lack of any dramatic bullish sentiment, merely a bounce. However, the transportation index is maintaining strength today after the inverted hammer/Harami at the T-line yesterday. Today's positive trading is bringing that index backup above the T-line. The prognosis remains the same, assume the downtrend in the markets remains in progress until there is a candlestick reversal signal and a close backup above the T-line. … [Read More...]