Beware the bounce! Or at least analyze that a positive trading today still does not indicate the direction of the market, a very nontradable market condition. The overall trend criteria remains the same, as long as the indexes continue to trade below the T line, assume the downtrend remains in progress.

Although the Dow traded positive yesterday, it was evident the T line was the resisting level. As long as the indexes continue to trade below the T line, assume the downward bias is most prevalent. Have short positions as the major portfolio positioning. The oil stocks sector is maintaining strength.

The indexes showing reversal signals yesterday and closing at or below the T-line produced the probabilities of the market indexes selling off, as confirmed in today’s lower trading. Any long positions should have compelling reasons to stay long. The short positions are obviously working very well. The bias in the portfolio should be to the short side.

The diversions in the NASDAQ trading higher and the Dow trading lower continues to the NASDAQ and the S&P 500 continue their uptrend, staying above the T-line. The Dow is trading higher, forming a bullish Harami off the 200 day moving average, the T line is still acting as a resistance. However, the market nature has not changed, the long positions continue to act well and the short positions continue to perform. Each individual stock chart remains the top criteria.

The NASDAQ trading solidly positive in the Dow trading solidly lower, clearly indicating the market is still very sector specific. The electric vehicle sector picking up strength while the oil stocks are trading lower. Have both long and short positions in the portfolio. Obviously, the political sparring in Washington is affecting specific sectors.

The Dow is now moved down to the 34 EMA, the NASDAQ and S&P 500 have moved down to the T-line. But note, the NASDAQ and the S&P 500 are currently forming two dark crows, a sell signal. The failure of the indexes reaching new highs in currently showing sell signals produce a strong probability the selling will continue. The short positions are working well today.

Although the NASDAQ and the S&P 500 closed relatively strong yesterday, the slight weakness in the Dow chart revealed the uptrend in the markets might not be enthusiastic. This visual analysis indicates a slow uptrend prospect at best, making the evaluation on each stock/sector the crucial assessment. Both long and short positions are working. Continue to have safety stops in place.

The indexes needed to see positive trading today to confirm a J-hook pattern that was staying above the T-line. However, the market environment remains very sector specific. The strength in the electric vehicle sector is now seeing profit-taking. The big retail stocks remain strong. And having safety stops in place is required i.e. BGFV.

The Dow trading positive back up above the T-line, the NASDAQ trading slightly lower but remaining above the T-line, indicates the lack of any major selling pressure on this market. A J-hook type pattern is setting up in the indexes. The market conditions still imply having both long and short positions in the portfolio. The electric vehicle sector remains very strong.

Be careful, the indexes continue to have a hard time getting up through the T line. The Dow has used it twice in the last two days as a resistance level. The NASDAQ and the S&P 500 continue to hover at the T line. The electric vehicle sector is holding up well,BLNK announced earnings with revenues well above expected. Have both long and short positions in the portfolio.