Today’s positive trading/bounce is making the T line and the 3T line relevant indicators. The indexes are still trading below the T line. That is important for indicating overall investor sentiment. Stay predominately short. Good long trades are working in the lithium mining stocks and the oil stocks.

A wildly unexciting summer day so far. The lack of today’s market direction does not change the direction, the indexes are trading below the T line. Stay predominately short. The lithium mining stocks and the oil stocks are still showing uptrend.

Reality check? Inflation, interest rates, new government spending, what do most investors think this could do to the economy? After a bullish bounce in an extended downtrend over the past six months, where was the likely target to take profits? The Dow and S&P 500, the 200 day moving average! Also, a good trend confirmation is in individual stock price charts. When short position patterns become much more attractive than bullish chart patterns, this simply implies the bears are starting to take control.

The T-line rule/Doji rule is providing good evidence the bears are starting to take control. The probabilities are now pointing to closing out long positions that are showing weakness and adding short positions. The NASDAQ gapped down through the T line, a strong sell indication.

Why no pics today? There will be times when the markets are not showing decisive direction. Yesterday’s Doji/Harami in the Dow produced good evidence of consolidation at the 200 day moving average. The NASDAQ was testing the T-line as support.

The market indexes remain in an uptrend indicated by the continued trading above the T-line as well as above the 3T-line. The transportation index is the first index to reach the 200 day moving average, it is trying to push through that level.

Today’s positive trading indicates bullish patterns in the indexes provided the indexes trade near the high end of there trading range. The Dow is in the process of a J-hook pattern off the T line with a best friend signal today. However, the NASDAQ is trading lower after its open. Obviously bullish charts continue to act bullish, numerous trend kicker signals have occurred today. Stay long but be alert for any hard selling before the end of the day.

The uptrend remains in progress in the market indexes especially with a J-hook pattern set up in the Dow and the transportation index. The J-hook patterns are continuing to be profitable. The trading strategy remains simple, stay predominately long as long as the indexes continue to trade above the T line.