and The Candlestick Forum
The market indexes remain in a steady uptrend. Why, you ask? It does not matter. The candlestick charts are revealing that all the buy and sell decisions are being made around the world are influenced by the assessment of investors anticipating more upside in the markets. We do not have to analyze why with candlestick charts all we need to do is analyze what everybody else is deciding to do. Continue to maintain a strong bias to the long side in the portfolio.
As can be logically expected, Today is a consolidation day after yesterday’s big bullish trading day. The Dow is showing the greatest weakness today while the other indexes, although trading lower, are not showing any dramatic selling. Unless there is a huge dramatic reversal, assume the overall market trend remains bullish with the indexes trading well within an uptrending trend channel. Stay predominantly long.
The bullish trading in the markets Today have additional relevancy. The Dow has gapped up through the downtrending resistance level of a wedge formation. The transportation index has gone up dramatically through the 200 day moving average. The NASDAQ and S&P 500 gapped up, continuing a J-hook type set up. This is all very bullish indicators, provided the indexes close at the high end of their trading range Today. The important factor is the Dow gapping up through a wedge breakout area. This could indicate a strong wave three, much more upside.
April 4th Daily Market Comments
The uptrend remains in progress, the transportation index and the Dow trading higher, the S&P 500 trading flat, and today the NASDAQ is trading lower, the accumulative analysis indicates no change of investor sentiment in the overall market trend, merely rotation. Stay predominantly long, this is where simple candlestick scanning techniques allow for identifying which sectors are performing the best.