January 28th Daily Market Comments

Today’s positive trading after yesterday’s Doji at least reveals the knee-jerk reaction to the China virus may have already played out. The indexes have to maintain their strength going into the close to indicate at least a bounce back up to the T-line area. Actually the knee-jerk reactions during an uptrend provide an outlet for profit-taking, which takes exuberance out of the markets. This makes the uptrend more sustainable. Look for a bounce back up to the T-line but then it will be important to see if they can get up through the T-line to continue the uptrend.