The positive trading on Friday did not produce reversal signals, merely positive trading. This did not negate the possibility of more upside but the lack of a candlestick reversal signal in the indexes that further upside should be viewed as not a full-scale reversal but a potential bounce. Numerous short positions should have been closed on positive trading today but be ready to re-short if this market turns around. Any long positions should be applied with safety stops in place.
January 9th Daily Market Comments
The positive trading on Friday did not produce reversal signals, merely positive trading. This did not negate the possibility of more upside but the lack of a candlestick reversal signal in the indexes that further upside should be viewed as not a full-scale reversal but a potential bounce. Numerous short positions should have been closed on positive trading today but be ready to re-short if this market turns around. Any long positions should be applied with safety stops in place.