The Dow, NASDAQ, and S&P 500 are currently trading in decisively back down to the T-line, the expected pullback target. The transportation index continues to trade positive, confirming the bobble breakout pattern. This combination implies consolidation in the markets, but not any major reversal. Stay predominantly long but it will be important to see the major indexes remain above the T-line Today. A close below the T-line would be a strong indication of more downside profit-taking at least during the short term.
July 23rd Daily Market Comments
The Dow, NASDAQ, and S&P 500 are currently trading in decisively back down to the T-line, the expected pullback target. The transportation index continues to trade positive, confirming the bobble breakout pattern. This combination implies consolidation in the markets, but not any major reversal. Stay predominantly long but it will be important to see the major indexes remain above the T-line Today. A close below the T-line would be a strong indication of more downside profit-taking at least during the short term.