Yesterday, the market indexes demonstrated a Doji type day, a day of indecision while still trading below the T-line and the 50 day moving average. The Doji rule made it very easy to anticipate the direction of today’s trading. If the markets continue to show the lack of strength to get them above the 50 day moving average and/or the T-line, it will be assumed the downtrend remains in progress until the next major reversal signal. Short positions need to be maintained as long as they do not close above the T-line. Any long positions established in the next day or so requires continued confirmation of trading bullish.
February 8th Daily Market Comments
Yesterday, the market indexes demonstrated a Doji type day, a day of indecision while still trading below the T-line and the 50 day moving average. The Doji rule made it very easy to anticipate the direction of today’s trading. If the markets continue to show the lack of strength to get them above the 50 day moving average and/or the T-line, it will be assumed the downtrend remains in progress until the next major reversal signal. Short positions need to be maintained as long as they do not close above the T-line. Any long positions established in the next day or so requires continued confirmation of trading bullish.