January 25th Daily Market Comments

Today’s positive trading is creating J-hook patterns in the indexes as well as numerous individual stock prices. The J-hook pattern indicates the consolidation is over, with the expectation of more upside/wave three. Continue to stay predominantly long, short positions that are not continuing to show weakness should be covered. The T-line in the indexes reveal the lack of any bearish sentiment. The 200 day moving average is a likely target for the Dow and the S&P 500. Utilize J-hook pattern trades.