Yesterday’s strong selling created a bearish J-hook pattern set up in the market indexes, indicating the T-line was a resistance area. The Dow tried to rally but failed at the 200 day moving average today before moving back down. The 200 day moving average may still be a support area. Watch to see whether the bearish J-hook pattern is the prominent pattern or whether the 200 day moving average area will be acting as a potential support. The bias of the portfolio should be to the short side but be on alert for support in this area or a bullish tweet.
August 15th Daily Market Comments
Yesterday’s strong selling created a bearish J-hook pattern set up in the market indexes, indicating the T-line was a resistance area. The Dow tried to rally but failed at the 200 day moving average today before moving back down. The 200 day moving average may still be a support area. Watch to see whether the bearish J-hook pattern is the prominent pattern or whether the 200 day moving average area will be acting as a potential support. The bias of the portfolio should be to the short side but be on alert for support in this area or a bullish tweet.