The T-line continues to act as a relevant indicator. The major indexes bounced up to that level Today and are currently starting to selloff. This indicates a bounce has occurred in the market but not yet a full fledged reversal back to the upside. These market conditions warrant being very selective as far as the strength of the signals and patterns. Continue to have both long and short positions in the portfolio.

The inverted hammer is the relevant signal Today. The NASDAQ formed an inverted hammer on the 50 day moving average yesterday. Today’s positive trading provides a good indication the 50 day moving average is going to act as a support level. This does not necessarily mean the markets are going to head straight up from here, the stochastics still need to start turning back up to confirm investor sentiment is not in the bearish mode. AAPL, AMZN, OSTK, NVDA are all trading positive after yesterday’s inverted hammer signals. There are still good long and short positions working. Be selective.

Although the market indexes traded well-off their low on Friday, they did not show any decisive reversal and they were still closing below the T-line. This makes the T-line rule the predominant factor, a downtrend has greater prospects when price moves close below the T-line.

Yesterday, the bearish engulfing signals in the Dow and the S&P 500 and the close below the T-line illustrated a dramatic change of investor sentiment. The hanging man signal was confirmed with a lower open and the lower trading in the NASDAQ.

Yesterday, the bearish engulfing signals in the Dow and the S&P 500 and the close below the T-line illustrated a dramatic change of investor sentiment. The hanging man signal was confirmed with a lower open and the lower trading in the NASDAQ.

The markets provided the hint yesterday there would be profit-taking Today. The Dow and the S&P 500 gapped up in the overbought area. The NASDAQ formed a hanging man signal. That information provided the stimulus to take some profits. Unless there is some very strong buying in the markets going into the close today, expect some more selling.

The strength of the markets are revealed by not only trading above the T-line, but using the 3T-line as support. The patterns continue to work,GRAF up strong after a slow curve,SHLL up strong again off of a J-hook pattern using the T line as support. The prognosis remains the same, continue to stay long as long as the uptrend remains above the T line. Take advantage of the pattern breakouts that allow for excessive profitability during an up-trending market.

The NASDAQ in a steady Eddie, it just won’t quit. The Dow consolidated back to the T-line and is showing support at that level. The uptrend remains in progress. Economic indicators continue to show expansion of the economy. The evaluation is simple, as long as the indexes trade above the T line, the uptrend remains in progress.

The nature of the market remains the same, the NASDAQ is trading higher Today while the Dow is trading lower. This is providing a trading environment where each individual stock/sector is the primary analytical factor. The trend continues as long as there is not any major reversal signal in the indexes continue to trade above the T-line. Gold stocks are picking up strength Today. Fry pan bottom patterns are still producing good profitability.

The slow market uptrend is maintaining its indecisive nature, the NASDAQ trading higher, the Dow trading lower. However, this is still producing market conditions where individual stock/sectors are performing very well.