The hammer signal in the Dow and the S&P 500 yesterday is being confirmed with today’s positive trading. The NASDAQ is also indicating bottom support. It will be important for the buying to continue into the close today. The next viable target will be the T-line. Although bottoming signals are appearing, and the candlestick charts indicate the probabilities indicate at least a bounce back up to the T-line area, the overall market trend still remains tentative until there is a close above the T-line. Numerous short positions have now been closed and any long positions added in this area should not show any negation of buy signals.
January 21st Daily Market Comments
The hammer signal in the Dow and the S&P 500 yesterday is being confirmed with today’s positive trading. The NASDAQ is also indicating bottom support. It will be important for the buying to continue into the close today. The next viable target will be the T-line. Although bottoming signals are appearing, and the candlestick charts indicate the probabilities indicate at least a bounce back up to the T-line area, the overall market trend still remains tentative until there is a close above the T-line. Numerous short positions have now been closed and any long positions added in this area should not show any negation of buy signals.