December 4th Daily Market Comments

Yesterday, the Dow formed a Doji at the downtrending resistance level. This made the prospects for some profit-taking to occur today. So far, the profit-taking pullback today has used the 3T line as a support level in the Dow and the NASDAQ. The S&P 500 is currently using the 50 day moving average as a targeted support level. Numerous stocks are still trading positive today, especially the bullish Doji sandwich charts of the past few days, indicating there is not a comprehensive selling in Today’s trading, merely profit-taking. Continue to stay predominantly long. There are also short positions working well. Crude oil appears to have found a base area and starting to trade positive from that level. Watch crude oil stocks for bullish signals.