Today’s positive trading still illustrate the indecisive nature of the markets. The T-line remains a relevant trend indicator. Both the Dow and S&P 500 have the potential of a bobble breakout over the next few days provided they stay above the T-line. Weakness before the end of the day would still indicate the potential of a blue ice failure. The transportation index has formed a bullish trading day so far after the inverted hammer signal of yesterday. Until there is definite confirmation of a candlestick formation from these levels, it remains prudent to have both long and short positions in the portfolio.
February 22nd Daily Market Comments
Today’s positive trading still illustrate the indecisive nature of the markets. The T-line remains a relevant trend indicator. Both the Dow and S&P 500 have the potential of a bobble breakout over the next few days provided they stay above the T-line. Weakness before the end of the day would still indicate the potential of a blue ice failure. The transportation index has formed a bullish trading day so far after the inverted hammer signal of yesterday. Until there is definite confirmation of a candlestick formation from these levels, it remains prudent to have both long and short positions in the portfolio.