The market trend remains in an indecisive mode. Although the indexes traded higher today, the Dow failed when it hit the 50-day moving average. The NASDAQ and the S&P 500 formed Doji days but above the T line. The market’s direction will be much better analyzed based on the Doji rule. Positive trading tomorrow means the uptrend is likely progressing, whereas a lower open in the indexes would illustrate a sideways nondirectional market. This will make the premarket futures a good indicator tomorrow. Until the market trend can be established one way or the other, having both long and short positions in the portfolio remains a good strategy.
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Good Investing,
Stephen Bigalow
