Beware the bounce! Although the indexes are trading higher today, the NASDAQ and the S&P 500 are currently trading back up to the T line. It will be important to see if those indexes can close above the T line today. The electric vehicle sector has bounced back up stay in well above the T line. Be careful, yesterday’s close below the T line indicated a possible change of investor sentiment in this uptrend.

The indexes continue to use the T-line as a support, making today’s trading more indicative of consolidation/profit-taking versus any full-scale reversal. Numerous stocks have also pulled back to the T line and showing support. Use the T line rule – as long as the markets/individual stocks continue to trade above the T line, assume the uptrend is still in progress. But keep safety stops in place.

The market indexes, exhibiting Doji’s over the last couple days, created the environment for profit-taking, as we are witnessing today. Profit-taking is the likely scenario since the indexes continue to trade above the T line. Stay predominately long but continue to have safety stops at levels where prices should not be trading if the bulls are still in control. Short positions are also working.

The markets like the passing of the infrastructure deal. But more specifically the sectors that are going to benefit the most. The electric vehicle sector is demonstrating strong J-hook patterns. The defense industry is showing good strength. With the market indexes well in the overbought area, maintaining the strong sectors is the logical strategy with safety stops always in place.

The Dow is not showing any dramatic bullishness but the NASDAQ and S&P 500 are starting to show some frothiness, starting to move away from the T line in the overbought area. The strategy remains the same, stay predominately long but keep safety stops in place.

The markets are showing indecisive trading so far today, the NASDAQ and the S&P 500 flat, the Dow down slightly. Waiting for the Fed meeting? The market remains sector specific, electric vehicles and biotech’s bullish, gold stocks and solar stocks bearish. These market conditions warrant having both long and short positions in the portfolio.

The market indexes continue higher with a lot of profit-taking/consolidation along the way. Today the electric vehicle sector is showing profit-taking. The gold sector continues to show weakness. Be prepared to take profits in one sector and move to another sector. The T line remains the ultimate trend indicator for the indexes.

Today’s indecisive trading in the market indexes continue to make each sector/stock the relevant analytical tool. Although there has not been any reversal signals revealed in the market indexes, the market is in an overbought condition . The J-hook patterns appeared to be the predominant pattern. Keep safety stops in place. The electric vehicle sector remain strong

A consolidation day, although the indexes are trading lower, they are trading above where they opened, indicating the lack of any aggressive selling. Politics of Washington still playing a major element as far as market indecisiveness. Use the T line as your ultimate trend indicator. Electric vehicle stocks continue to show strength.

The Dow closed right on the T line yesterday. Currently it is showing positive trading, a bullish Harami, indicating the T line is continuing to act as support. The other indexes are up strong enough to have negated any of the sell signals. Numerous trend kicker signals and bullish Harami’s are in the process of forming. The uptrend continues as long as the indexes do not start trading back down through today’s open.