January 28th Daily Market Comments

Today’s hard selling is still making the T-line a critical indicator. All the indexes are trading lower but currently trading right at the T-line. It will be important to see if the indexes close above the T-line, near the high end of their trading ranges Today. A close near the high end of the trading range and above the T-line would produce more evidence of the slow uptrend continuing, still making the 200 day moving average a likely target. A close near the lower end of Today’s trading range, below the T-line, would imply a pullback to the 50 day moving average to see if it’s going to act as support. A close near the lower end of the trading range would also add more evidence the uptrend was currently running out of steam based upon the past two weeks showing a lack of bullish sentiment. Be ready to take some profits if the indexes close below the T-line Today. There are numerous stocks that although are trading lower, are trading above where they opened, indicating the lack of aggressive selling so far Today.

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