Be careful! Although a couple of the major indexes, after opening much lower, are now trading slightly positive. But this is not creating any candlestick reversal signals. The fact that the stochastics are still heading down causes some suspicion that the market has not yet bottomed out. The 50 day moving average is showing some relevancy for the transportation index but the remaining indexes are merely trading positive from where they opened. A bounce? It will be important to see how the indexes close today. Stay predominantly short until there are definite reversal signals in the indexes.
February 5th Daily Market Comments
Be careful! Although a couple of the major indexes, after opening much lower, are now trading slightly positive. But this is not creating any candlestick reversal signals. The fact that the stochastics are still heading down causes some suspicion that the market has not yet bottomed out. The 50 day moving average is showing some relevancy for the transportation index but the remaining indexes are merely trading positive from where they opened. A bounce? It will be important to see how the indexes close today. Stay predominantly short until there are definite reversal signals in the indexes.