Although the indexes are trading lower, they are trading above where they opened. This is an indication there is any dramatic selling, merely some initial profit-taking from the big move Yesterday followed by some more buying. Also, the indexes are all hovering around the T-line, providing the possibility of the T-line acting as a support level. There is a Downtrending resistance level at the top of the trading ranges of the indexes that still need to be breached to show that wave three is starting. Yesterday’s strong trading after the Doji’s indicates Bullish Sentiment, diminishing the prospects of any further downtrend. Continue to use each individual stock chart as the top criteria for being either long or short.
August 23rd Daily Market Comments
Although the indexes are trading lower, they are trading above where they opened. This is an indication there is any dramatic selling, merely some initial profit-taking from the big move Yesterday followed by some more buying. Also, the indexes are all hovering around the T-line, providing the possibility of the T-line acting as a support level. There is a Downtrending resistance level at the top of the trading ranges of the indexes that still need to be breached to show that wave three is starting. Yesterday’s strong trading after the Doji’s indicates Bullish Sentiment, diminishing the prospects of any further downtrend. Continue to use each individual stock chart as the top criteria for being either long or short.