The market indexes continue in their sideways/wedge mode, making both long and short positions continue to perform. The retail sector continues to trade lower. Oil prices continue to move up.

Although the indexes opened positive, the T line continues to act as a resistance level in the indexes are currently trading below where they opened. Stay predominantly short.

Today’s early positive trading has bounced the indexes back up to the T line but the T line appears to be acting as a resistance level. Stay predominantly short.

The downward bias is evident with the indexes continuing to trade below the T line. The gap down in the NASDAQ and the S&P 500 reveal strong selling pressure. Any long positions need to remain above the T line.

The Dow and the transportation index clearly failed at the 50 day moving average. The NASDAQ, after a bearish left/right combo is now formed a bearish Doji sandwich back to the 50 moving average. The S&P 500 has traded down through the 50 day moving average and the T line. Any long positions should be closed if they are showing sell signals.

Today’s consolidation/resting in the market is not unexpected after the big breakouts through the 50 day moving average and all the indexes yesterday. Trading should be oriented toward the long side as long as the indexes are confirming the bobble breakouts.

The Dow continues to have trouble at the 50 day moving average, but the NASDAQ trading up through the 50 day moving average is forming a bobble breakout. The S&P 500 is trying to do the same. Cover short positions that are starting to show by signals.

Now that the NVDA euphoria expectations are over, now what? The markets are now going back to the analysis of interest rates. Continue to evaluate each individual chart on its own merits.

Although the indexes traded positive on the open, the T-line remains indicative of the trend. Be careful of buying any long positions with great aggressiveness.

The summer doldrums remain in play, making the emphasis on each individual stock chart. The T line remains the ultimate criteria, assume the overall market direction is still bearish with the indexes trading below the T line.