The uptrend remains in progress with a couple important messages being conveyed today. The NASDAQ and the S&P 500 have Gapped up through the highs from around 1 June. The gap up has occurred in the overbought condition. Depending upon how the markets close today will illustrate whether this was exhaustion in the overbought condition or the recent highs are not acting as resistance anymore. A close near the high end of the trading range in the indexes would indicate wave three is still in progress. A candlestick reversal signal, such as a Doji or a Shooting Star, would indicate the potential of Today’s gap up being an exhaustion of Bullish investor sentiment. Stay long but watch how the markets close Today.
July 19th Daily Market Comments
The uptrend remains in progress with a couple important messages being conveyed today. The NASDAQ and the S&P 500 have Gapped up through the highs from around 1 June. The gap up has occurred in the overbought condition. Depending upon how the markets close today will illustrate whether this was exhaustion in the overbought condition or the recent highs are not acting as resistance anymore. A close near the high end of the trading range in the indexes would indicate wave three is still in progress. A candlestick reversal signal, such as a Doji or a Shooting Star, would indicate the potential of Today’s gap up being an exhaustion of Bullish investor sentiment. Stay long but watch how the markets close Today.