Currently the market indexes are showing a resting day. Nothing has altered the current uptrend, investor sentiment is not changed, evidenced by the fact the markets continue to trade above the T-line. While the major indexes continue to drift higher, the transportation index continues to drift lower, indicating overall investor sentiment is not going to be rampantly bullish. The strategy remains the same, stay predominantly long but have logical stop’s in place.

Washington politics do not seem to be an adverse affect on investor sentiment. Today’s positive trading is showing strength coming out of consolidation areas of the past few days. Nothing has changed investor sentiment, the uptrend continues above the T-line. Climbing the wall of worry provides more evidence the bullish market is in progress.

Today’s mild selling does not show any change of investor sentiment. The indexes continue to trade above the T-line. The lack of any substantial direction in the market indexes provide a trading atmosphere that allows each individual stock chart to be the primary analytical factor. Stay predominantly long but have safety stop’s in place. When the market indexes start moving lethargically sideways, it becomes susceptible any good news or bad news to move the indexes one way or the other.

The Dow and the S&P 500 are trading flat or slightly higher after bouncing off the T line. The NASDAQ opened lower but is trading above where it opened, indicating buying is still occurring in this market. The transportation index is trading below the T-line causing an alert for watching the rest of the market indexes to start more selling.

The slow steady buying indicates calculated buying versus exuberance during this uptrend. The T-line remains a relevant factor for the market uptrend as well as individual stock prices. Numerous stock prices have consolidated mildly back to the T-line and then started back up. This indicates profit-taking occurring along the way. Continue to stay long as long as prices stay above the T-line.

Today’s selling was somewhat telegraphed last week with numerous indecisive/Doji trading days in the indexes. With the >Doji days occurring in the overbought condition after a good uptrend, it provided suspicion of some profit-taking about ready to occur. Anticipate more consolidation but not necessarily a reversal in the market indexes as long as they continue to trade above the T-line. This provides opportunities to analyze each individual position in the portfolio to evaluate whether it is time to take profits and look for other sectors that are about ready to start uptrends. The biotech sector is showing good strength.

Although Today’s slight selling is relatively indecisive, not showing any drastic change of investor sentiment, there is another visual consideration. Note that the indexes have been forming numerous Doji’s over the past few trading days. Although the uptrend remains in progress, the indecisive trading of the past few days should act as an alert that there may be a change of investor sentiment coming. Stay long but keep safety stop’s in place.

The double Doji set up that formed in the Dow yesterday provided good probabilities that if the markets opened positive today, the uptrend would continue, and likely with good strength. The indecisive trading in the NASDAQ and the S&P 500 over the past three days provided the same implication. The candlestick signals and patterns still do not reveal any change of investor sentiment. Assume that the next wave of the market uptrend is in progress but always have safety stop’s in place. Anticipate more upside.

More consolidation but nothing that shows a change of investor sentiment yet. Anticipate a slow trading day/profit-taking. Analyze each individual stock chart, looking for potential reversal signals. The length of this market trend will allow for taking profits in specific stocks/sectors and rotating that money into new positions. Stay predominantly long as long as the indexes continue to trade above the T-line. Today, the 3T-line is acting as a support level.

The market indexes are appearing to be in a consolidation stage today, allowing the T-line to catch up. Market consolidation is further implied with the transportation index trading very bullish today. The overall trend remains bullish without any evidence of a candlestick reversal signal as well as the indexes continuing to trade above the T-line. These market conditions warrant scanning for the strongest bullish chart setups, i.e. best friend signals, frypan bottom breakout’s.