The indexes were nudging the top of the resistance level yesterday in the overbought condition. The NASDAQ did a Doji, at least providing a little warning that the upper resistance area may still be relevant. Today’s lower trading confirms a major change of investor sentiment at that level. The NASDAQ is currently trading back below the T line, as well as the transportation index. The short positions are working extremely well.

The Monday morning consolidation is still allowing the strong signals/patterns to perform i.e. ORMP confirming the bullish trend kicker signal. The indexes continue to trade above the T line indicated the probabilities for a continued uptrend to continue. Stay long in positions that remain above the T-line.

Observe the obvious, the slow uptrend in the market indexes continue, staying well above the T-line. The evaluation of individual stock charts remain the top criteria. Numerous charts show buy signals and trading back up above the T line. Stay predominately long.

The reversal signals in the Dow and NASDAQ quickly indicated the selloff of the previous week was merely profit-taking versus an overall market trend reversal. Additionally, with the indexes trading back up above the T line, not only indicates the uptrend is still in progress but it creates a market environment producing good investor bullish sentiment. This makes for taking advantage of big breakout moves. When there is no fear factor in the overall market, investor sentiment will move breakout prices with much greater enthusiasm.https://youtu.be/LEoFmJ7ZWzM

Numerous stocks that were good shorts last week have now shown strong reversals. The candlestick investor has a great visual advantage of seeing when a price move has reversed, enhanced with where price move reversals are occurring. Numerous stocks showed strong candlestick buy signals right on major moving averages, acting as support levels. This provides much stronger probabilities of being in the right place at the right time.

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The expected profit-taking today is not showing any real downward pressure on the market indexes. Investor confidence is building back up. This is seen in some of the big breakout moves, especially seen in the co-vid related stocks. Apparently the new cocktail mixes are getting a lot of attention. The uptrend should be in progress as long as the indexes remain above the T line.

Be careful the bounce! Although the indexes are trading positive Today, stochastics are still in a downward direction in the indexes are below the T line. There was sentiment damage done over the past few days in the markets. It would take bullish confirmation of getting the indexes back up above the T-line to have bullish confidence built back up. Continue to use the T line as your ultimate criteria.

Be careful the bounce! Although the indexes are trading positive today, stochastics are still in a downward direction in the indexes are below the T line. There was sentiment damage done over the past few days in the markets. It would take bullish confirmation of getting the indexes back up above the T line to have bullish confidence built back up.