The Dow and the S&P 500 are getting close to the top of the trend channel, the first obvious resistance area. The NASDAQ has been gapping up for the last couple of days, creating the potential of a scoop pattern. The transportation index has confirmed that the 50 day moving average is not going to act as resistance. Continue to stay predominately long but watch to see how the markets react once they do get to the top of the trend channel.
February 17th Daily Market Comments
The Dow and the S&P 500 are getting close to the top of the trend channel, the first obvious resistance area. The NASDAQ has been gapping up for the last couple of days, creating the potential of a scoop pattern. The transportation index has confirmed that the 50 day moving average is not going to act as resistance. Continue to stay predominately long but watch to see how the markets react once they do get to the top of the trend channel.