The Dow is trying to form a bobble breakout, it is trading right at the 200 day moving average. But the NASDAQ and the S&P 500 are trading indecisively today, not unexpected the day before a major election. However, bullish charts are acting well and bearish charts are acting well. Use the T line as your ultimate indicator.

Although the market indexes are trading up well today, there are numerous short positions working extremely well. This is an indication that the market is in a sector/stock specific mode. As usual, it will be important to see where the indexes close today in regards to the T line.

The indexes all close below the T-line yesterday after revealing sell signals, accept for the Dow. However, the Dow illustrated the same signals at the 200 day moving average as witnessed in mid August. A Doji/Harami followed by bearish confirmation and confirmed with today’s gap down below the T line. Now the trading should be oriented to the short side.

The 200 day moving average remains a relevant resistance level for the Dow. The NASDAQ is confirming yesterday’s bearish left/right combo with the current trading below the T line. The S&P 500 has backed off to the T line and 50 day moving average. Today’s indecisive trading is waiting for the Fed report. Any aggressive buying or selling should be done after the fed announcement.

The 200 day moving average is an important level for the Dow. It acted as a resistance level a couple months ago. This will make candlestick signals more relevant at this level. Be nimble. Good economic news produces more reasons for the feds to continue to raise interest rates.

After the strong bullish day of Friday June today’s profit-taking is not unexpected. The transportation index is trading positive while the other indexes are trading indecisively lower, indicating today’s selling is not across-the-board. Stay predominately long but be aware the market indexes are currently in the overbought condition. Have stops in place.

The Dow trading higher because of GDP showing 2.6% growth and/or better-than-expected earnings in Dow stocks. The 50 day moving average remains a viable target but with the warning the Dow is now moving significantly away from the T line. The S&P 500 is trying to nudge through the 50 day moving average and the NASDAQ needs to close above the T line today. Long positions are working well but be prepared for the markets to possibly show profit-taking before the end of the day.

Bullish sentiment continues. The 50 day moving average becomes a potential target for the S&P 500 and the NASDAQ. Continue to stay predominately long. The strong bullish signals and patterns are working well. Short positions are starting to change trajectory, be ready to take profits on the short side.

The indecisive nature of the market has one very compelling feature. The indexes, once they closed above the T line, were in an uptrend. For the candlestick investor, this is a very important analytical tool. Although the market conditions warrant having successful long and short positions, the upward bias of the market at least produces having more analysis making sure the short positions are not losing momentum. The oil stocks remain a very strong sector.

The T-line factor remains very relevant. Bullish sentiment is assumed when the indexes are trading above the T line. However, the indecisive nature of the current uptrend makes identifying specific sectors as the best trade criteria. The defense stocks are showing good strength. At the same time, stocks that have never come back up above the T line are still producing good short profits.