Archives for July 2018

Today’s positive trading, apparently with the announcement that the China trade talks may be back in the schedule, gives the appearance the indexes may be supporting at important technical levels. The NASDAQ is currently hovering at the 50 day moving average, the Dow and S&P 500 are trying to form bullish Harami’s. But the most compelling index is the transportation index, showing good strength without any major change of it’s uptrend. Today’s positive trading illustrates any great change of investor sentiment, the uptrend should be still in progress. This is evident as long as the markets don’t show a severe selling reversal Today.

Reversal or consolidation? More than likely consolidation, the NASDAQ has touched the 50 day moving average and appears to be supporting at that level. The Dow is not trading off with any great urgency. And the transportation index continues to trade positive, indicating there is no mass bailout in this market. Continue to stay predominantly long but having a few short positions in the portfolio is prudent.

4.1%! Apparently the market anticipated that level. No great major move one way or the other in the markets. The current J-hook pattern of the Dow remains in progress. The Dow is trading positive, the NASDAQ is trading lower, illustrating the lack of any major change of investor sentiment.

Although the S&P 500 and the NASDAQ are trading lower, they are trading above where they opened, the NASDAQ supporting on the T-line, the S&P 500 supporting on the 3T-line. The Dow trading significantly higher clearly demonstrates the lack of any selling pressure in the markets. The Dow is forming a potential J-hook pattern making the top of the trend channel the likely target. This implies there should be more days/weeks of an uptrend.

The markets are still in a schizophrenic mode, Today the Dow is trading lower , the transportation index and NASDAQ are trading higher. This illustrates the lack of any major change of investor sentiment, the current trends of the market remain in progress. T-line study – note the positions yesterday that closed at or just slightly below the T-line are trading positive, indicating the T-line is acting as support IE VICR. Positions that close well below the T-line yesterday are not showing as much bullish recovery Today. Continue to use the T-line as your ultimate trend indicator.

The Dow, NASDAQ, and S&P 500 are currently trading in decisively back down to the T-line, the expected pullback target. The transportation index continues to trade positive, confirming the bobble breakout pattern. This combination implies consolidation in the markets, but not any major reversal. Stay predominantly long but it will be important to see the major indexes remain above the T-line Today. A close below the T-line would be a strong indication of more downside profit-taking at least during the short term.

A consolidation day, evidenced by the lack of any selling in the overall market indexes. The NASDAQ is trading slightly lower, the S&P 500 trading relatively flat, the Dow up slightly, but the transportation index is stronger than Bears breath Today.

The markets are showing an indecisive trading nature Today but this has not changed the overall market sentiment. However, the transportation index started out nicely positive today but is now showing decisive bearishness, a bearish engulfing signal.

A Friday in the middle of the summer, not likely going to produce any massive market moves. But these are days that illustrate the relevancy of candlestick charts. Although the market may not be having any great movement, the majority of bullish candlestick charts continue to act bullish because of the sentiment that has already been creating the signals and patterns. Continue to stay predominantly long as long as the indexes continue to trade above the T-line.