The downtrend continues. The jobs report did not show any information that would have changed investor sentiment. Use the strong sell signals/patterns to take advantage of the current downtrend.

Be careful of the bounce, the Dow is still trading below the T line after a strong evening star signal failure at the 50 day moving average. Assume the downtrend is still in progress. Unfortunately, a positive trading day today would indicate more sideways motion of the markets. Be very selective, any positioning in these market conditions should have very strong chart indications.

The effects of a blue ice failure are still in progress in the Dow. The other indexes are trading relatively flat but assume bearish sentiment is still in control as long as the indexes are now trading back below the T line. Any trading should have very compelling chart signals for both long and short positions today.

Today’s consolidation is not unexpected after the indexes hit their first target levels yesterday and backed off. Currently, the selling today is based upon Powells reiteration of aggressive interest rate hikes. However, note the indexes consolidated right back to the T line and have bounced up from there. Stay predominately long with a few short positions in the portfolio.

The Dow is currently nudging the first resistance level, the 50 day moving average. The NASDAQ is testing the downtrending resistance level. The uptrend is in progress but don’t be surprised about some profit-taking over the next day or two at these resistance levels.

The market indexes are confirming the bullish reversal signals of yesterday by trading up through the T line. This should have induced some profit-taking on short positions. But today’s analysis is that the indexes need to close above the T line to show a definite change of investor sentiment. Long positions are working as well as short positions but anticipate the bias to the long side if the market indexes close above the T line today.

The 200 day moving average continues to act as the logical target for the Dow. The NASDAQ and the S&P 500 not showing any great selling pressure but indicating the slow downtrend remains in progress. Stay predominately short.

The Doji rule is applied to the market trend analysis. Today’s lower open further confirms the breakthrough of the wedge formation in the Dow has the prospects of a very strong downtrend continuing. The NASDAQ and the S&P 500 gapped down below the support levels. Stay prominently short.

Market trend analysis remains very simple when utilizing the probabilities of the T line. Having confidence in this indicator, the T line, allows you to make the appropriate positioning of your portfolio with much more aggressiveness. Stay predominately short.

Although the Dow is doing a short-term bounce, the NASDAQ and the S&P 500 are not following suit. Anticipate more weakness in this market, making short positions a better strategy. Any long positions require continued bullish confirmation by staying above the T line.