Today’s bearish trading has confirmed the indecisive signals at the resistance level in the indexes yesterday. Short positions that were showing good prospect are obviously improving profitability today. The prognosis remains the same, bullish trades require very compelling bullish confirmation, short trades can be added to the portfolio.

The positive trading in the Dow and the S&P 500, although relatively slight, has gapped up through the down trending resistance level. The NASDAQ is trading slightly lower at the resistance level. This merely reveals a definite lack of very sentiment in the markets. Remain bullish oriented but with safety stops in place.

Beware, although the markets are trading positive, they are still trading below the T line with stochastics pointing down. Before doing any aggressive buying, wait to see how the markets finished the day.

The indexes are trading below the T-line why is that important to address? Because the assumption is the bearish sentiment is in control. Knee-jerk reactions such as today’s reaction to Microsoft gapping up have to be watched with skepticism. Note the NASDAQ is trading much higher but currently trading below where it opened, indicating a lack of bullish sentiment after the initial move.

The market indexes continue to drift below the T-line. Although there were some solid earnings reports today, the indexes continue to show weakness. NASDAQ related stocks are going to be reporting after the close. Assume the downtrend is in progress.

The indecisive signals in the indexes in the overbought condition produce expectations of a reversal. This is evident in the NASDAQ. These market conditions warrant moving back to cash if positions are not showing good evidence of bullish trends. The bearish positions are working better.

The markets remain in a consolidation mode. However, note that the Dow is still using the T line as a support level. The other indexes are moving sideways. This continues to allow the the strong bullish patterns as well as the strong bearish patterns to continue in a profit mode.

The Dow continues to have a hard time breaking out through the resistance level. The other indexes opened higher but trading below where they opened, indicating the lack of any dynamic bullish sentiment. The markets are still in anindecisive mode. However, they are not selling off, making individual stocks/sectors continuing to produce good trends.

The markets are obviously not moving, the Dow has resisted at a down trending resistance level, the NASDAQ is moving absolutely sideways. Gold stocks have been sold with the reversal in gold prices. Artificial intelligence stocks are showing some strength. The indecisive trend of the market continues to make trading very sector specific.

The indexes, although an upward trajectory, remain indecisive. However, the artificial intelligent stocks and the lithium mining stocks are showing strength. These market conditions imply specific sectors showing strength while the rest of the market is trading lethargic like.