A good bullish day? Be careful, today the indexes gapped up in the overbought condition. It would not be unusual to see profit-taking start coming in before the end of the day, before a long weekend. And the prospect of the indexes, after coming up through the 50 day moving average resistance level, pulling back to see if the resistance level is now going to act as support. Stay predominantly long. Any selling in the market would make for more diligent evaluation of long positions, making sure reversal signals were not occurring.
January 18th Daily Market Comments
A good bullish day? Be careful, today the indexes gapped up in the overbought condition. It would not be unusual to see profit-taking start coming in before the end of the day, before a long weekend. And the prospect of the indexes, after coming up through the 50 day moving average resistance level, pulling back to see if the resistance level is now going to act as support. Stay predominantly long. Any selling in the market would make for more diligent evaluation of long positions, making sure reversal signals were not occurring.