The lower numbers on the service sector index Today to the indexes right down to the suspected target of the 200 day moving average. Now that they are there, the 10 minute chart becomes more relevant to see if the 200 day moving average area is the place where the buying starts. This may not necessarily indicate a reversal to the upside is starting, merely showing where short covering may be occurring as well as buyers starting to add the bullish positions. Watch to see what type of signal may be created in the indexes Today. Consider taking profits on short positions, at least closing out partial positions.

Is this a bad day in the market? For most investors it is. Fortunately for candlestick investors, the scanning process makes a natural evolution of rolling a portfolio from predominantly long to predominantly short based upon the evaluation of the market indexes. Being predominantly short makes this a very good day in the markets. When will the selling stop? More than likely at levels that everybody else’s watching to see if that will be a support level.

The graphics of candlestick charts allow for a much more accurate evaluation of the nature of a price trend. As illustrated today, another announcement, the manufacturing report, dramatically changed the bullish sentiment of yesterday’s trading. The charts easily reveal a lack of consensus on any given trading day from the previous day.

The market indexes are trading positive today so far, is this a potential reversal? This is how candlestick analysis can dramatically fine tune trend analysis. The Dow for example trading positive but is currently having problems getting through the T-line resistance level. Will it be able to breached that level? That makes the 10 minute chart a more relevant analytical tool.

The market still does not have any trend direction. The Dow is currently trading right in the middle of a sideways movement and stochastics are still heading in a downward direction. These market conditions obviously make it very difficult to find numerous trending stocks. Fortunately, although the numbers of good charts set ups is minimal, there are very profitable chart patterns identified, STNG, CENTA, VC, BDC longs, ENPH,SPWR, SMAR shorts. There is always a number of bullish and bearish chart patterns that will work effectively, that can be identified with simple candlestick scanning techniques, that will produce good profits even when the overall market is sideways.

Investor sentiment is obviously being influenced by politics. The nature of the market remains the same, indecisive positive one day selling the next day. Currently there is no consensus as far as an overall direction of the markets. This continues to create a trading environment that does not produce any advantageous analysis for sustained trade positions. Until the markets produce a decisive direction, any existing positions require confirming trend confirmation, either long or short. This nebulous analysis is based upon the nebulous market conditions.

Washington politics definitely making the markets difficult to trade. This makes analyzing each individual stock chart the top priority. Fortunately, candlestick signals and patterns continue to produce profitable trends, both bullish and bearish. The T-line remains a relevant trend indicator. Stay with positions that are continuing to perform above or below the T-line. Today’s positive trading in the markets still has to be viewed as creating indecisive overall market trend. Be careful, utilize stops at levels that prices should not be trading.

Today’s positive trading has moved the indexes above or at the T-line area. Currently the indexes are showing indecisive/Doji type formations, not demonstrating powerful bullish sentiment. The T-line area still remains a critical analytical factor. Any new positions established in these market conditions require witnessing confirmation going into the close. With the indexes hovering just above and below the T line, investor sentiment remains indecisive. This creates a trading atmosphere that can be greatly influenced by positive or negative news. Be careful.

Friday’s market close clearly illustrated the relevancy of closing above or below the T-line. As seen in the Dow and NASDAQ, a close below the T-line has two significant factors. One, a close below the T-line dramatically improves the probabilities the sellers are in control and two, a close below the T-line shows the negation of the expected uptrend. The T-line should be a major factor when deciding to close a position. It is very easy for most investors to buy when they see a buy signal but have a very difficult time knowing when to close out a trade.

The market indexes not showing any dramatic force one way or the other but the underlying factor of the indexes continuing to trade above the T-line at least provides a greater probability prospect that the uptrend remains in progress. This analysis may not be anything more than analyzing the lack of any great selling pressure in the market, allowing for specific bullish candlestick chart patterns to continue working. Numerous J-hook patterns i.e.DOCU continue to perform, as well as frypan bottom patterns working.