It is not unusual to see a knee-jerk whipsaw action after a fed announcement. The NASDAQ is not only trading lower but below the open of yesterday’s candle, clearly indicating the sellers are still in control in those sectors. The Dow is currently trading back below the T line. Shorts that would have been covered on yesterday’s strength now need to be reconsidered.

FOMC, do not anticipate any major market movement until after the meeting. Any established positions today require having close stops in place. With the indexes trading below the T line, assume bearish sentiment is still the prevailing atmosphere.

The indexes are not showing any great movement today, anticipating the Fed meeting this afternoon. Currently there is no indication there has been a change of investor sentiment producing this downtrend. Stay predominately short but there are good long positions signals.

A bounce, but nothing yet to show a change of the bearish sentiment. The indexes continue to trade well below the T line. As usual, buying usually occurs early in the day during a downtrend but then experiences more selling later in the day. It is when the selling does not come into a trend late in the day that reveals better probabilities of the bulls try to take control. For now, stay predominately short.

The economic numbers much more negative than expectations. The indexes already trading below the T line. Nothing yet to imply bullish sentiment coming back into this market. Stay short. Any long positions being considered should have very compelling bullish chart patterns.

Observation – it is not unusual to see the early trading go opposite of the current trend. As long as the indexes continue to trade below the T line, assume the downtrend is in progress.

Being the worst investor in the world before candlesticks came along, it is a very gratifying feeling to be in the right direction at the right time. The short trades continue to work, especially the dumpling top’s. Stay short until you see evidence of buy signals in the market indexes.

The market trend analysis remain simple, the downtrend is in progress as long as the indexes continue to trade below the T line. However, anticipate some sideways/slightly downward trajectory in the markets, letting the T line catch up. The stochastics are still showing further downside weakness potential. Stay predominately short.

The Dow, transportation index, and the S&P 500 are showing good bullish confirmation. The NASDAQ, although trading higher, is trading below where it opened after resisting at the 50 day moving average this is still producing good bullish charts as well as good bearish charts. Numerous high tech stocks continue to show weakness. Have both long and short positions in the portfolio.

NFLX took the wind out of the sails in the NASDAQ. Note how numerous stocks traded positive yesterday but failed today at the T line. Numerous dumpling top’s are still in progress. The Dow trading positive while the NASDAQ is trading lower makes having both long and short positions in the portfolio.