Today’s gap up in the Dow, followed by immediate selling becomes a little bit of a warning/alert. The Dow needs to trade well above yesterday’s close to keep from creating a bearish belt holds signal. The other indexes have gapped up in the overbought condition today, also requiring the maintenance of bullish sentiment going into the close. If the market indexes start selling off, especially backdown through yesterday’s close, be prepared for some profit-taking next week. Keep your safety stops in place.
December 20th Daily Market Comments
Today’s gap up in the Dow, followed by immediate selling becomes a little bit of a warning/alert. The Dow needs to trade well above yesterday’s close to keep from creating a bearish belt holds signal. The other indexes have gapped up in the overbought condition today, also requiring the maintenance of bullish sentiment going into the close. If the market indexes start selling off, especially backdown through yesterday’s close, be prepared for some profit-taking next week. Keep your safety stops in place.