The expected profit-taking, after yesterday’s gap up shooting star in the Dow, is in progress. Profit-taking is the likely scenario versus a full-scale reversal based upon the indecisive nature of today’s trading, a Doji type day. The uptrend is still considered to be in progress as long as the indexes remain above the T-line. However, the shooting star is showing stronger selling in the Dow than the other indexes. This would imply another day or two of consolidation back to the T-line. It will be important to see what type of candlestick signal the Dow produces Today, whether it is a strong selling day versus an indecisive profit-taking day. Be prepared to take profits on strong market weakness Today.
February 26th Daily Market Comments
The expected profit-taking, after yesterday’s gap up shooting star in the Dow, is in progress. Profit-taking is the likely scenario versus a full-scale reversal based upon the indecisive nature of today’s trading, a Doji type day. The uptrend is still considered to be in progress as long as the indexes remain above the T-line. However, the shooting star is showing stronger selling in the Dow than the other indexes. This would imply another day or two of consolidation back to the T-line. It will be important to see what type of candlestick signal the Dow produces Today, whether it is a strong selling day versus an indecisive profit-taking day. Be prepared to take profits on strong market weakness Today.