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.