The market indexes continue to toy with the lower channel support level. Today’s gap down in the Dow after a Doji yesterday showing failure at the T-line reveals more bearish pressure, the possibility of a bearish J-hook pattern that would take the Dow down through the support level. Until there is a definite change of the sideways trend channel in the indexes, any existing positions, either long or short, can be maintained as long as they are not breaching their T-line trends. But this is probably not a market condition to be adding new long positions or short positions yet. Be patient, the market will provide trend information soon. Offsetting the Dow’s Doji gap down will require strength with Today’s trading closing near the top end of the trading range.
December 14th Daily Market Comments
The market indexes continue to toy with the lower channel support level. Today’s gap down in the Dow after a Doji yesterday showing failure at the T-line reveals more bearish pressure, the possibility of a bearish J-hook pattern that would take the Dow down through the support level. Until there is a definite change of the sideways trend channel in the indexes, any existing positions, either long or short, can be maintained as long as they are not breaching their T-line trends. But this is probably not a market condition to be adding new long positions or short positions yet. Be patient, the market will provide trend information soon. Offsetting the Dow’s Doji gap down will require strength with Today’s trading closing near the top end of the trading range.