The market trend is in a transition stage. Today's positive trading in the indexes provided the possibility of a market trend reversal. However, the full confirmation of a change of investor sentiment requires witnessing candlestick reversal signals in the indexes and a close above the T line. As illustrated, potential reversals have occurred over the past few weeks with candlestick buy signals and closes above the T line, but they did not confirm the signal the next day, closing the indexes back below the T line. This is very important for analyzing what is occurring in investor sentiment. These market conditions allow for analyzing individual chart patterns to recognize which down trending stocks remain in progress and which stocks have produced bullish confirmation. This is what puts the probabilities greatly in the candlestick investors favor.
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Stephen Bigalow … [Read More...]
Although the Dow is trading much higher, the other indexes do not appear to have the same follow-through strength. The reminder remains that as long as the indexes continue to trade below the T line, bearish sentiment is still in control. Any entry into long positions require confirmation of the bulls maintaining the position going into the close. Retail stocks continue their downtrend.
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May 25th Daily Market Comments
The Dow is producing the strongest bullish reversal prospects PROVIDED the Dow closes near the high end of the trading range. The other indexes are trading positive but below the T line. Be prepared for a reversal but give it to the end of the day. … [Read More...]