Today’s profit-taking was not unexpected, not because the markets hit all-time highs yesterday, but that the market indexes had moved too far away from the T-line. Today the selling is blamed upon the China virus, or the jobs numbers being strong deters the possibilities of another rate cut. They will always find a reason for the selling. What is more important is analyzing the candlestick charts to show what is likely to happen based upon human nature. The Dow was up over a thousand points this week, profit-taking was expected. This does not alter the uptrend.
February 7th Daily Market Comments
Today’s profit-taking was not unexpected, not because the markets hit all-time highs yesterday, but that the market indexes had moved too far away from the T-line. Today the selling is blamed upon the China virus, or the jobs numbers being strong deters the possibilities of another rate cut. They will always find a reason for the selling. What is more important is analyzing the candlestick charts to show what is likely to happen based upon human nature. The Dow was up over a thousand points this week, profit-taking was expected. This does not alter the uptrend.