February 6th Daily Market Comments

Today’s relatively flat trading continues to indicate the lack of any major change of investor sentiment. When the market opens lower, but very mildly lower, that indicates there is some profit-taking but no compelling bearish sentiment coming into the market trend. The lack of any major change of trend direction makes the 200 day moving average a viable target for the NASDAQ as well as the S&P 500. The transportation index is not shown any weakness, using the 3Tline as a trend support. As long as the markets indexes remain in a slow steady uptrend, the strong candlestick breakout patterns will produce good profits without the worry that there is any major change in the overall market. No matter what the rhetoric of Washington DC, the candlestick charts are revealing that investors are still making their decisions based upon other factors.