April 20th Daily Market Comments

The indecisive nature of the market trend has been illustrated with the Dow and S&P 500 not able to get back up above the T-line. At the same time, the NASDAQ and the transportation index have traded above the T-line for the last few days. The T-line is a very important confirming factor, until we see all the indexes trading above the T-line, there will not be any decisive trend movement. Today’s positive trading is breaking the Dow and the S&P above the T-line. But like Yesterday’s trading that had started off with the indexes trading positive, that strength needs to be witnessed going into the close today. This would not signal a major reversal. There are still visible resistance levels in the major indexes that need to be breached to illustrate there is a new strength in investor sentiment.