Friday’s indecisive trading, a Doji day, in the indexes made the likelihood of profit-taking Today that much greater. The Dow actually did a Doji after gapping up slightly in the overbought condition and at an all-time high. Today’s trading in the transportation index shows a definite change of investor sentiment after the Doji/shooting star signal at the T-line on Friday followed by a much lower trading Today. The prognosis remains the same, candlestick patterns, such as the Frypan bottom pattern will likely continue in spite of the market selloff, i.e.

Although the Dow is trading at all-time highs, the NASDAQ is trading lower. This does not diminish the strength of the market, it actually reveals that exuberance has not come into the market trend. This makes for a much more solid/sustained trend movement. These market conditions continue to produce good profits on the long side as well as some good profits on the short side. Analyze each individual position on its own merits but with knowing the overall bias of the market is still in an upward direction.

Although the Dow is still trading higher, the strongest bullish indication today was the gap up in the NASDAQ after yesterday’s Doji day right at the T-line. The analysis is very simple, as long as the indexes continue to trade above the T-line, the uptrend remains in progress. The trading strategy remains the same, the bias of the portfolio should be bullish with a few short positions still producing good profits.

Although the Dow is trading up strong again today, rampant enthusiasm still has not permeated this market. Yesterday’s positive trading demonstrated the indexes were going to stay above the T-line, implying the uptrend remains in progress. However, with the Dow trading up 175 points, the transportation index and the S&P 500 trading moderately higher, the NASDAQ is trading lower. This combination demonstrates that bullish and bearish sentiment is evident in specific sectors. The prognosis remains the same, the slow uptrend of the markets continues but still with very selective stocks/sectors. Have both long and short positions in the portfolio with the bias toward the long side.

Today’s positive trading in the indexes are showing strength at the T-line and currently showing the lack of confirmation in yesterday’s evening star signals. This is good for the bullish uptrend PROVIDED selling does not bring the markets back down through Today’s open. If the markets close with good bullish candles Today, staying above the T-line, additional bullish confirmation will be required to confirm the uptrend is continuing, albeit very slowly. A lower open in tomorrow’s trading would indicate sideways/wedge formations forming in the indexes, obviously not making for very compelling trend movement. Continue to have both long and short positions in the portfolio.

Soggy day! There is not anything is showing any major change of investor sentiment but all the indexes are trading lower Today. This is different than the majority of trading days during this slow uptrend where one or two indexes would be trading higher while the other one or two indexes would be trading lower. The NASDAQ is selling off hard, it is currently the only index trading below the T-line. The NASDAQ is also looking like it is creating a sideways wedge formation, implying no major trend movements for the next week or two. Long positions should be watched with more scrutiny and having a few more short positions in the portfolio is prudent.

Today’s positive trading in the indexes continue to confirm the J-hook patterns as well as indicating the uptrend is in progress as long as the trading remains above the T-line. Until there is a dramatic candlestick sell signal in the indexes, assume the uptrend will remain in progress, likely heading toward the top of the trend channel.

Yesterday’s potential bullish reversal signals required confirmation today which is not occurring, especially in the NASDAQ. The T-line remains a relevant resistance level. Although there is no evidence of consensus selling, there is also no evidence of consensus buying. This implies the market conditions will continue to remain waffling, making having both long and short positions in the portfolio the best trading strategy.

Today’s trading in the indexes continue to indicate a lack of direction. With the indexes opening lower but currently trading positive reveals a basing action in the Dow, NASDAQ and S&P 500. The transportation index is still demonstrating any lack of selling pressure. The trading strategy remains the same, have both long and short positions in the portfolio. Any positions in the portfolio should be utilizing the T-line as the ultimate trend indicator.

The indexes still do not show any decisive trend movement. Although the NASDAQ is trading higher so far today, it is trading below where it opened. The Dow is showing the same thing. The S&P 500, although trading higher, is trading right about where it opened, forming an indecisive Doji day. This would produce an analysis that the market trend is not changing from what it was doing last week. Having both long and short positions in the portfolio remains prudent. However, the one factor that reveals the lack of any major selling is the transportation index, up 150 points Today, a Frypan bottom type pattern remaining above the T-line.