Market trend analysis factors. Bullish signals over the past few days have brought the indexes up above the T line. However, the nature of the market is still in a sideways mode, up days, down days. The current bullish trend of the past few days still needs to get the markets up out of the sideways trend channel. Until then, any aggressive buying is not necessary in these market conditions.

Be careful, the indexes have reached the top of the sideways trading range. The Dow touched the 50 day moving average and then started selling off. The sideways channel remains the top analytical factor for the current investor sentiment. The T line continues to show relevancy in numerous stock prices. Remain nimble.

The great debate! Is there a recession coming? That seems to be the big talking heads topic. If you are trading in the stock markets, the answer is who cares? The markets have illustrated their downward trend since the beginning of the year.

Sideways market! Get out the fishing gear and cleanup the golf clubs. However, short positions that have remained below the T line are continuing their downtrends. Very few long positions are providing good upside potential. The summer doldrums make the general market a very lethargic trading atmosphere but there are still good trades.

Today’s lower trading in the markets indicated better prospects for a sideways moving market. Friday’s Doji in the Dow, just below the previous top of two weeks ago, indicated the lack of bullish pressure. The NASDAQ gapped down in today’s trading indicating the 50 day moving average was acting as a resistance level. Unless the markets find excessive strength going into the end of the day, the sideways mode of the markets may be revealing the summer doldrums. Any long or short positions require compelling patterns.

The indexes trading above the T line makes for the strong assumption the uptrend is in progress, alleviating anxiety on early trading selling. The J-hook patterns continue to produce good profits.

The NASDAQ is producing the strongest bullish confirmation, a Doji sandwich breakout through the downtrending resistance level, making the 50 day moving average the next likely target. Although the Dow is not showing great strength, the other indexes and indicators are showing good bullish confirmation. The J-hook patterns are producing the best results.

Note that the early-morning buying brought the indexes right up to the T line before selling back off. As long as the indexes cannot close above the T line, assume the downtrend is in progress. With that in mind, early-morning bounces will not cause anxiety if you’re short. Stay predominately short.

Capitulation day? This is what one talking head expert suggested. But as a candlestick analysis the Dow is currently forming a Dagwood/bearish J-hook pattern, indicating more downside probabilities. Stay predominately short. There are very few bullish charts that are compelling.