Although the indexes continue to trade above the T-line, giving strong probabilities a slow uptrend remains in progress, the nature of the uptrend appears to be very choppy. This was implied with the Dow opening much higher but trading below where it opened on Thursday, while the NASDAQ traded higher. This demonstrated in continuity, demonstrating some sectors are going to trade stronger while other sectors are trading lower. The insurance sector showed good strength.EHTH, NMTH, MTG, UNM, FNF. Auto dealers started showing strength, LAD, AN, SAH.
In some of the retailers were showing good strength, HIBB, BBBY, KSS. The important factor will be how the markets open on Monday morning. The indexes need to see good premarket for the continuation of the uptrend. A close below the T line in the Dow and the S&P 500 and NASDAQ would imply a down-trending channel is the stronger trend indicator. How the markets close on Monday in regards to the T-line will be very important. Join us on October 17 and 18th for a two-day training on how the T-line is one of your strongest profit-producing indicators used in conjunction with candlestick signals. Click here for more information.
October 5th Daily Market Comments
The T-line is obviously the relevant trend indicator. The knee-jerk reaction on Friday, Trump in the hospital, brought the indexes back down to the T-line. Today’s positive trading reveals investor sentiment is remaining positive. Anticipate a slow, choppy upward trajectory of the markets. This allows for identifying the strong candlestick chart signals and patterns.