August 10th Daily Market Comments

After the market indexes gapped up on Tuesday in the overbought condition and was followed by a couple more days of Doji’s, that provided the suspicion the market was running out of steam and to be prepared for some profit-taking. The profit-taking in Today’s trading is more likely than a reversal because the candlestick signals are demonstrating buying above where prices opened in the NASDAQ. The S&P 500 is trading lower but in decisively. It will be important to see what the magnitude of the selling is going into the close. Be prepared for some more profit-taking.