The lack of bullish reversal signals yesterday makes today’s positive trading a little suspect. Although the indexes are trading well above the T line, make sure any bullish trades are the result of good candlestick patterns.

Although the Dow is trading up strong today, it is still in a down trending drift. The NASDAQ and the S&P 500 are in a sideways mode below the T line. The markets may be waiting for the CPI numbers. The big techs continue to trade lower. The market remains sector/stock specific.

Although the PPI numbers did not create a very big reaction in the markets after the open, they did knock down strong bullish premarket futures back into the negative territory. This continues the indexes trading below the T line. The market trend still has a bearish bias but not with any great force. Analyze each chart on its own merits.

Today’s positive trading if it holds up going into the close will demonstrate the NASDAQ supporting at the 50 day moving average and the S&P 500 supporting at the 34 EMA. It will be important to see where the market indexes close today.

The market indexes closing below the T line yesterday made be in prepared for more selling. Any long positions that were not showing strength, especially in the overbought area, should have been closed. Numerous strong short positions could be established.

Although the indexes remain above the T-line, Today’s current selling reveals the markets are not yet showing bearish sentiment but also not showing any great bullish sentiment, a sideways market trajectory. This continues to make the evaluation of each individual stock chart the most important criteria. Any buying today should have very strong confirmation.

The T line remains a factor, the indexes opened lower because of the positive jobs report but currently trading above where they opened. Continue to utilize each individual stock chart as the top criteria.

The T line rule is still in effect. As long as the indexes are trading below the T line, assume investor bias is bearish. Today’s expected Fed comments apparently not appearing to be any great influence. Both long and short positions are working with the bias toward the downside.

Not a decisive trading day and with the indexes trading at or below the T line. The markets appear to be in a wait and see mode. This makes each individual stock chart the main criteria today.

Weakness in the market trend is being demonstrated with the NASDAQ currently trading back below the T-line, forming a sideways wedge. The Dow is trading below Friday’s open, improving the probabilities of a pullback at least to the T-line. Positions that look iffy should be analyzed as to whether they are the best places to have your money. Take some off the table.