Archives for February 2019

The implication that the T-line was continuing to act as a uptrending support level is obviously further confirmed today. The NASDAQ is potentially forming a Doji sandwich, making the 200 day moving average a viable target. The Dow trading higher indicates the 200 day moving average/T-line area continues to act as a support level. Note that the Dow opened higher, at yesterday’s open and continue to trade higher, making for a small trend kicker signal. The transportation index continues to move higher further confirming the T-line has maintained the uptrend.

The positive trading going into the close on Friday brought the indexes backup above the T-line. Today, although the Dow is trading slightly lower, the NASDAQ and S&P 500 are trading slightly higher. This is currently making the T-line support that much more viable. Most importantly, the transportation index is trading up strong today. This is making the overall prognosis continuing to lean more toward profit-taking occurring during the current uptrend. Note that numerous individual stock charts are in the process of forming J-hook patterns. Watch the T-line.

The evidence of the potential of profit-taking that was illustrated in the candlestick charts over the past two trading days is in progress today. However, the T-line is still acting as a relevant support factor. Both the NASDAQ and the S&P 500 have already tested and bounced back up off the T-line. The S&P 500, failing at the 200 day moving average and then showing support at the T-line creates the possibility of a bobble breakout if the S&P 500 comes back up and test the 200 day moving average. Numerous individual stocks have also appeared to support at the T-line. It will be important to see whether the day finishes near the top end of the trading range or the lower end of the trading range.

Today’s relatively flat trading continues to indicate the lack of any major change of investor sentiment. When the market opens lower, but very mildly lower, that indicates there is some profit-taking but no compelling bearish sentiment coming into the market trend. The lack of any major change of trend direction makes the 200 day moving average a viable target for the NASDAQ as well as the S&P 500. The transportation index is not shown any weakness, using the 3T–line as a trend support. As long as the markets indexes remain in a slow steady uptrend, the strong candlestick breakout patterns will produce good profits without the worry that there is any major change in the overall market. No matter what the rhetoric of Washington DC, the candlestick charts are revealing that investors are still making their decisions based upon other factors.

Today’s positive trading, showing good steady buying, has a little warning flag. The market indexes gapped up Today, although not significantly, but a gap up in the overbought condition. Be diligent, the 200 day moving average is a likely target for this uptrend but be prepared to take profits. Numerous candlestick pattern breakouts are working well today i.e.GPRK. Use the T-line as your ultimate trend reversal indicator.

The analysis remains the same. As long as the market indexes continue their slow steady uptrend, numerous candlestick signals and patterns produce good profits, especially the fry pan bottom breakouts and the J-hook patterns. As long as the talking heads continue to express concern about the market rally, the market rally will continue.