The indecisive trading of yesterday in the indexes, the Doji/Harami signals in the overbought condition, provided the warning that the recent high of June 1 might be acting as a resistance level. That is being confirmed with the lower trading today. This would have been a stimulus for taking profits on long positions today if the premarket futures were showing a bearish sentiment. The transportation index is selling off very hard while the Dow is selling off, likely back to the T line. It will be important to see where the markets close today. Unfortunately it may be indicating the continuation of a sideways/summer doldrums market trend.
August 2nd Daily Market Comments
The indecisive trading of yesterday in the indexes, the Doji/Harami signals in the overbought condition, provided the warning that the recent high of June 1 might be acting as a resistance level. That is being confirmed with the lower trading today. This would have been a stimulus for taking profits on long positions today if the premarket futures were showing a bearish sentiment. The transportation index is selling off very hard while the Dow is selling off, likely back to the T line. It will be important to see where the markets close today. Unfortunately it may be indicating the continuation of a sideways/summer doldrums market trend.