A question often asked, how do you analyze a trend when it keeps bobbing up and down above and below the T-line? Simple, what does that illustrate about the Bulls and the Bears? There is no decisive trend direction. Yesterday’s bullish trading produced the prospects the indexes were going to remain above the T-line. Today’s selling obviously did not confirm. This creates a market environment where each chart pattern requires good bullish confirmation to stay long and having short positions in the portfolio is prudent. If the indexes close near the low end of their trading range Today, be prepared for more sideways/indecisive market trends, until there is something relevant that creates a strong bullish and/or bearish sentiment.

Today’s positive trading continues to confirm the uptrending T–line is still acting as support, as illustrated in the NASDAQ and the S&P 500. The positive trading in the Dow in the T-line area illustrates the lack of any major selling pressure as of now. The assumption remains the uptrend remains in progress as long as the indexes stay above the T-line. This is producing big profits for candlestick signals/pattern breakouts, i.e.ALGN, WIX, NFLX and MU trend kicker signal. Stay predominantly long until there is evidence of strong sell signals in the indexes.

Yesterday’s little gap up in the market indexes, followed by selling later in the day, implied there would probably be some profit-taking. Today’s lower trading is currently trading well off their low in the indexes. As long as there is not any major selling candle today, assume that today is merely a profit-taking day. Continue to utilize the T-line as your final criteria for recognizing a change of investor sentiment.

Today’s bullish trading continues the steady uptrending market. The lack of evidence of exuberance is illustrated with numerous stocks trading in an upward direction but with one or two days to the upside, followed by a day of selling, followed by more upside. This indicates there is profit-taking occurring along the way. Because the market is not providing a powerful directional force, this makes each individual stock chart analysis based upon the candlestick signals or patterns. Obviously have the portfolio biased to the upside but there are still a few good short positions performing profitably. It is good to have a slight mixture of short positions in the portfolio as a safety factor.

The indexes needed to see strength Today to indicate the recent tops were not going to continue to act as a resistance. The Dow is currently trading above the T-line, the NASDAQ and S&P 500 are trading into new recent high territory. The uptrend is in progress as long as the markets do not close back below the low end of their trading range today. Continue to stay long.

The indecisive nature of today’s trading in the market indexes is illustrated by numerous stocks trading slightly positive and numerous stocks trading slightly negative, not demonstrating an overall consensus.NVDA trading lower, AMZN trading higher. It is important to observe the uptrend in the NASDAQ and the S&P 500 is currently showing indecisive trading at the same levels those trends topped out a few weeks ago. Watch what signals might occur at those potential resistance levels. The prognosis remains the same, the important analytical factors are based upon each individual stock chart.

The lack of selling in Boeing is allowing the Dow to demonstrate its true strength, currently trading up above the T-line. This is in conjunction with positive trading in all the other indexes, all currently trading above the T-line. In spite of all the political rhetoric, investor sentiment is demonstrating bullish trending in all of the indexes. Numerous candlestick signals and patterns are providing very strong profitability. Any short positions should be maintained provided they have not shown reversal signals. Most short positions have been closed out at this time. Simple trend analysis, the uptrend will remain in progress as long as the indexes do not close back below the T-line.

BA is keeping the Dow from coming up through the T-line. However, the NASDAQ and S&P 500 continue their move above the T-line. This puts the general market in a slightly bullish condition, not yet with full bullish confirmation but revealing the lack of any major selling pressure anymore. Maintain short positions that have not demonstrated reversal signals but the portfolio should be oriented more toward the long side as long as the indexes stay at or above the T-line area.

The lower open in the Dow today was the BA affect. The other indexes opened positive and traded positive. Positive trading would have brought the indexes up to the expected T-line resistance level but as can be seen, the S&P 500 and the NASDAQ do not seem to be resisting at that level. It will be important to see if the indexes close near the high end of the range today, confirming the buying that started after the open on Friday.

The Dow is currently trading right about where it opened, down 120 points. The S&P 500 also a Doji so far today. The NASDAQ is trading lower but above where it opened. However, although the NASDAQ is exhibiting some buying, it currently is not strong enough to illustrate any change of the markets downtrends. Continue to stay predominantly short until you see definite reversals in the market indexes. The downtrend remains in progress with stochastics still heading down. A reversal at this stage would require a dramatic bullish candle.