A downtrend will usually consist of buying in the morning and selling later in the day, continuing the downtrend. Use the T line rule, as well as the 3T rule, as long as the indexes are trading below the T line, the downtrend remains in progress

Bounce? The NASDAQ is trading positive but keep in mind that during a downtrend, it is not unusual to see early morning buying and then the overall trend continues in the downward trend later in the day. Currently there is nothing that illustrates a change of investor sentiment, no reversal signals and stochastics are still heading down. Ukrainian crisis, inflation, masks, over hanging concerns. Stay predominately short.

The market downtrend continues to make the bearish J-hook patterns very profitable. Stay predominately short as long as the indexes continue to trade below the T line. The electric vehicle sector is holding up but not going anywhere in this declining market. Evaluate each individual position based upon is it the best place to have your money or are there better situations.

The T-line has a major psychological aspect. It indicates investor sentiment. If trading remains below the T line, investor sentiment is more susceptible to selling on any indications of bad news. This is evident in the lack of positive news coming from the Ukrainian situation. Stay predominately short. As usual, any bullish positions require compelling charts to stay long.

Yesterday, the failure of the Dow, S&P 500, and transportation index closing above the T-line required bullish confirmation today to indicate a reversal has occurred. The NASDAQ was the only index to close above the T line yesterday but today’s bearish trading produces evidence the downtrend remains in progress. Long positions need to be very very compelling at this point. The portfolio should be oriented toward the short side.

Relief rally? Watch the T line. The Ukrainian situation appears to be defusing, but inflation may still be a negative to the markets. Electric vehicle sector acting well. The Dow is currently nudging the T line. The NASDAQ opened at the T line and currently hovering at that level. Stochastics are still heading lower in the indexes. This makes it important to see where the markets close today. Obviously, short positions did not execute.

General observation, a market downtrend usually experiences buying in the early part of the day and then the trend continues later in the day. Stay predominately short until there is a visible reversal signal in the market indexes.

Knee-jerk reaction! High inflation numbers unexpected? Note how the NASDAQ and the S&P 500 has made the T line support relevant. Continue to use the T line as your final analysis on individual stock positions. Currently, the inflation number and what the feds might do to react have likely already been built into investment decisions. The electric vehicle sector is showing strength across-the-board.

The Dow is confirming a bobble breakout at the 50 day moving average with the other indexes forming J-hook patterns after supporting at the T line for the past few days. Numerous J-hook patterns are working well on individual stock charts. Short positions showing reversals should be or should have been closed out by this point. Stay predominately long.

The market trend remains indecisive, no direction. Utilize the strong charts obviously, either bullish or bearish. Although the Dow is showing some strength, the NASDAQ and the S&P 500 remain in a sideways mode.

CORZ should not be bought until it comes up through yesterday’s high.