Yesterday’s Doji in the indexes gave a better view of whether the market was still in a sideways trend or whether the 200 day moving average was going to be the next target, the bottom of the trend channel. Today’s gap up, especially in the NASDAQ, illustrates the lack of any overpowering selling pressure. Although Today’s positive trading reveals the downtrend is now more in a sideways trend, the sideways trend remains the prominent direction until there is a breakout through the upper resistance level. Continue to have both long and short positions in the portfolio provided they are not violating the T-line.
April 26th Daily Market Comments
Yesterday’s Doji in the indexes gave a better view of whether the market was still in a sideways trend or whether the 200 day moving average was going to be the next target, the bottom of the trend channel. Today’s gap up, especially in the NASDAQ, illustrates the lack of any overpowering selling pressure. Although Today’s positive trading reveals the downtrend is now more in a sideways trend, the sideways trend remains the prominent direction until there is a breakout through the upper resistance level. Continue to have both long and short positions in the portfolio provided they are not violating the T-line.