The strength of this uptrend is revealed by the backing and filling/profit-taking that occurs during the uptrend. The J-hook Pattern in the Dow illustrates profit-taking last week followed by new buying this week. The NASDAQ demonstrated two weeks of consolidation before the strong best friend signal showed new buying. The confirmation that there was merely profit-taking versus a market reversal was demonstrated by the transportation index. It’s steady uptrend, staying above the T-line, indicated there was no major change of investor sentiment. Today’s positive trading in all the indexes continues the uptrend without any indication of a change of investor sentiment. Stay predominantly long.
October 4th Daily Market Comments
Today’s relatively flat trading in the market indexes indicates there is no major change of investor sentiment. The uptrend remains in progress with healthy backing and filling along the way. Continue to stay predominantly long. The T-line remains a very effective trend indicator. The NASDAQ may be showing some consolidation your the top of a trend channel but the Dow is still in a good J-hook Pattern wave three. The big tech stocks have moved up to where their trading backup above the T-line, NVDA, AMZN, NFLX. Currently there is no evidence of any major change in investor sentiment.