January 19th Daily Market Comments

A trend/price moves in a direction based upon investor sentiment. In a case of the indexes, the downtrend can still be easily identified due to the lack of a candlestick buy signal and a close above the T-line. A change in the indexes require a significant candlestick reversal signal. This usually occurs when some world event creates a different outlook from investors. Currently the major influence on the world markets, crude oil, has not had a change of downward direction. Although today’s trading is positive, it has not yet created any signal that would show a change of investor sentiment.