Today’s positive trading puts the Dow and the S&P into a sideways trading mode. The NASDAQ is showing the least bullish indications. The T line continues to act as a relevant indicator for the overall market trend. Obviously, the lack of direction in the markets instigates more scrutiny on each individual stock chart. Watch to see where the Dow finishes today, above or below the T line.

The T line continues to be the vital trend factor. The Dow is trading positive in the NASDAQ is trading lower. The lack of convincing bullish pressure or bearish pressure in the market indexes is making having both long and short positions in the portfolio the current strategy. Utilize the individual signals and patterns for maintaining long and short positions.

The indexes are showing a whipsaw/indecisive mode. The positive trading after yesterday’s Doji in the NASDAQ and the inverted hammer type signals in the Dow and S&P 500 provide good evidence the recent support levels in the markets of two weeks ago may be continuing to act as support. The final criteria remains the T line.

The indexes continue to show a lack of bullish presence. Crude oil is currently trading at $129. Nothing has changed in the Ukrainian crisis. Until a strong candlestick reversal signal appears in the market indexes, stay predominately short.

The downtrend remains in progress! This is a simple analysis as long as the indexes continue to trade below the T line. Obviously, the bearish sentiment in the markets are influenced by the Ukrainian situation. As long as there does not seem to be any change of circumstances in Ukraine, the downtrend will persist. Higher oil prices equals inflation. Stay predominately short. Long positions do not need to be bought aggressively in this downtrend.

Be careful! The Dow has not produced any bullish reversal signal, bullish candles but not bullish candlestick reversal signals. The NASDAQ, after last week’s large piercing signal continues to move sideways, not showing any strong direction. The markets are still in an indecisive/weight and see mode. Both long and short positions are working but keep stops in place.

When the market indexes are trading below the T-line, any bullish trading early in the day needs to be viewed with suspect. Assume the downtrend is in progress as long as there is not a close above the T-line. Trading should be oriented toward the short side, any long positions requires staying above the T line.

The T line remains a resistance level for the Dow. The NASDAQ trading slightly lower today but still above the T line. This combination reveals the lack of any conviction of bullish or bearish sentiment. Continue to have both long and short positions in the portfolio.

The T line relevancy remains relevant! The direction of the market requires evidence the bulls can get the markets back up above the T line. Until that time, the market trend is still in question. Both long and short positions are viable but also require trend confirmation with the T line.

Be careful of the bounce! The indexes still need to show strength and closing above the T line. Until that happens, be aware that investor sentiment has not changed enough to start an uptrend. A large MorningStar signal in the Dow makes moving up to the T line a likely target but then it needs to confirm by getting through that level. Stay cautious.