The MorningStar bounce in the Dow, off the 50 day moving average, and now confirming with strong trading above the T line clearly indicates the recent profit-taking is over. The NASDAQ and the S&P 500 are also confirming bullish trading above the T line. Numerous short positions are now covered. J-hook patterns are the predominant pattern, especially with numerous stocks bouncing back up off the T line. Add long positions with the expectation of the indexes closing above the T line.
August 23rd Daily Market Comments
The MorningStar bounce in the Dow, off the 50 day moving average, and now confirming with strong trading above the T line clearly indicates the recent profit-taking is over. The NASDAQ and the S&P 500 are also confirming bullish trading above the T line. Numerous short positions are now covered. J-hook patterns are the predominant pattern, especially with numerous stocks bouncing back up off the T line. Add long positions with the expectation of the indexes closing above the T line.