The evidence of the potential of profit-taking that was illustrated in the candlestick charts over the past two trading days is in progress today. However, the T-line is still acting as a relevant support factor. Both the NASDAQ and the S&P 500 have already tested and bounced back up off the T-line. The S&P 500, failing at the 200 day moving average and then showing support at the T-line creates the possibility of a bobble breakout if the S&P 500 comes back up and test the 200 day moving average. Numerous individual stocks have also appeared to support at the T-line. It will be important to see whether the day finishes near the top end of the trading range or the lower end of the trading range.
February 7th Daily Market Comments
The evidence of the potential of profit-taking that was illustrated in the candlestick charts over the past two trading days is in progress today. However, the T-line is still acting as a relevant support factor. Both the NASDAQ and the S&P 500 have already tested and bounced back up off the T-line. The S&P 500, failing at the 200 day moving average and then showing support at the T-line creates the possibility of a bobble breakout if the S&P 500 comes back up and test the 200 day moving average. Numerous individual stocks have also appeared to support at the T-line. It will be important to see whether the day finishes near the top end of the trading range or the lower end of the trading range.