January 31st Daily Market Comments

With the market indexes closing at the T-line yesterday, as mentioned yesterday, a simple trend analysis technique could be applied to today’s trading. The uptrend required a positive open. Today’s lower open indicated the T-line was not acting as support, more downside would be expected. The selling is being blamed on all the political rhetoric but realistically the markets have taken profits approximately every 30 days during this previous uptrend. Take profits on positions that are showing sell signals and closing below the T-line. Gold stocks continue to act strong.