Today’s hard selling, reacting to the dismal outlook from Microsoft, puts the market indexes back into sideways mode, most evident in the Dow. The gap down in the NASDAQ and the S&P 500 produces that same scenario. The S&P 500, with a bearish kicker type signal shows a failure at the downtrending resistance level. Any long positions not showing any good strength should likely be closed.

The NASDAQ is currently confirming the J-hook plus pattern. The S&P 500 is forming a bobble breakout and the Dow is indicating it supported at the bottom of a wedge formation. Numerous J-hook plus and bobble breakout patterns are working well on individual stock prices.

Morning Member Comments

Be careful of today’s early bounce. Look for some consolidation near the T line on some of the indexes. Any buying today should be done with the watchfulness of strength maintaining going into the close.

No pics today due to loss of Internet last night. Chat session tonight at 6 PM, to make up for last nights power failure. Please note the time change to 6 PM. Plus, tomorrow will be a full day training on candlestick patterns and how to apply them to market analysis, then executing the best trade potentials.

The NASDAQ is formed a Doji right on the 50 day moving average/T line. The S&P 500 is forming a Doji but well below the T line. The Dow forming a Doji well well below the T line. This makes tomorrow’s open very indicative of the trend direction of the markets, the Doji rule. Any long positions should have very compelling reasons to stay long. Look for good short positions.

The T-line remains a critical factor for maintaining a fry pan bottom trajectory. The NASDAQ and the S&P 500 continue to trade positive while the Dow has consolidated right back to the T line. Stay predominately long as long as the bullish patterns remain above the T line. There are good shorts that are also remaining below the T line.

Although the Dow was trading down 300 points, the other indexes are trading relatively flat, continuing the fry pan bottom trajectory staying above the T line, as well as the 3T line. This is making each individual stock chart analysis the top criteria.

The fry pan bottom pattern in the indexes should be your ultimate analysis, keeping from being whipsawed on weaker opens each day. Continue the strategy of staying in long positions remaining above the T line but short positions need to be scrutinized. Any short positions that are not showing great weakness should be covered on any positive trading today.

Identifying that a fry pan bottom pattern has been performing in the indexes allows for sitting through knee-jerk reactions with a little bit more patience. Inflation? Not really affecting investor sentiment with any great influence. Continue to stay long on good bullish charts, there are good bearish charts working also.

The fry pan bottom pattern continues to develop in the indexes. This makes for more confidence that bullish trades are going to continue to act well without any evidence of sellers trying to take control. Long positions should be the portfolio bias.

Currently a lack of direction in the markets. At best a sideways motion. Continue to have both long and short positions in the portfolio. Each individual stock chart evaluation is the top criteria.