The market indexes formed Doji/Harami’s yesterday, producing the prospects of a reversal of the downtrend. Today’s positive trading currently reflects the potential confirmation of a reversal. However, the confirmation requires a bullish close today, making the T-line the next potential target. This implies a bounce to that level, then a breach of the T-line is required to show that a full reversal of the downtrend has been established. Any buying Today requires the markets to close positive. A close back near the lower end of Today’s trading range would indicate the Bulls are not yet taking control.
December 19th Daily Market Comments
The market indexes formed Doji/Harami’s yesterday, producing the prospects of a reversal of the downtrend. Today’s positive trading currently reflects the potential confirmation of a reversal. However, the confirmation requires a bullish close today, making the T-line the next potential target. This implies a bounce to that level, then a breach of the T-line is required to show that a full reversal of the downtrend has been established. Any buying Today requires the markets to close positive. A close back near the lower end of Today’s trading range would indicate the Bulls are not yet taking control.