and The Candlestick Forum
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.
Today’s trading appears to be a rebound/consolidation day. Numerous stocks that have been trading lower over the past few days are showing bounces. Stocks that were trading higher over the past few days are showing weakness. This does not indicate any major change of investor sentiment in the overall market, mainly because there wasn’t any dramatic investors consensus over the past few trading days. Existing positions should remain in place as long as there is not any dramatic reversal signals.
The markets remain indecisive, the Dow is trading positive, the transportation index is trading positive, the S&P 500 and NASDAQ are trading lower. This is producing more evidence that each stock/sector has to be evaluated on its own merits, the overall market is not providing pressure one way or the other.
Although the Dow is trading relatively flat, the NASDAQ is getting it very hard. The NASDAQ and the S&P 500 are currently demonstrating that the T-line is not acting as a viable support. Yesterday the NASDAQ did a Doji day but opened lower Today and is currently trading below the T-line. Additionally, stocks that have any semblance of bad news are getting slammed hard today, indicating investor sentiment may be showing signs of major change.
Although the market indexes are trading lower, they have climbed back up toward the top end of their trading range, currently creating Doji’s. The Dow is trading right on the T line. The NASDAQ had pulled all the way back to the T line and is now trading near the high and of its trading range. The transportation index is trading positive.
September 14th Daily Market Comments
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.