Once again the markets are trading in the opposite direction of the previous trading day, making the overall direction a flat/sideways trajectory at best. The Dow is selling off the hardest. If it closes at these levels, a slow sideways slightly downward trend would continue until the 50 day moving average catches up. To continue a reasonable uptrend requires the indexes to close above the T-line Today. These market conditions still warrant analyzing each individual position based upon the price not showing a reversal signal and a close below the T-line. When the market is not providing any consistent trend, any open positions should reveal a good trend. Otherwise, sitting in cash for a few days does not hurt.
July 11th Daily Market Comments
Once again the markets are trading in the opposite direction of the previous trading day, making the overall direction a flat/sideways trajectory at best. The Dow is selling off the hardest. If it closes at these levels, a slow sideways slightly downward trend would continue until the 50 day moving average catches up. To continue a reasonable uptrend requires the indexes to close above the T-line Today. These market conditions still warrant analyzing each individual position based upon the price not showing a reversal signal and a close below the T-line. When the market is not providing any consistent trend, any open positions should reveal a good trend. Otherwise, sitting in cash for a few days does not hurt.