After a few days of consolidation, yesterday the Dow formed a Doji/hammer signal right on the T-line. For the slow bullish uptrend to remain in progress, today’s trading needed to see a positive open and positive trading, continuing to keep the Dow trading above the T-line. It would not be good to see the Dow close back below the T-line today. A possible warning flag is seen that the NASDAQ has gapped up in the overbought condition. This is usually the candlestick chart conditions to start watching for a possible reversal/pullback in the markets. Continue to stay long but be aware of whether the markets can push higher. If trading languishes in this area for most of the day, be prepared for some selling in the next couple of days.
July 27th Daily Market Comments
After a few days of consolidation, yesterday the Dow formed a Doji/hammer signal right on the T-line. For the slow bullish uptrend to remain in progress, today’s trading needed to see a positive open and positive trading, continuing to keep the Dow trading above the T-line. It would not be good to see the Dow close back below the T-line today. A possible warning flag is seen that the NASDAQ has gapped up in the overbought condition. This is usually the candlestick chart conditions to start watching for a possible reversal/pullback in the markets. Continue to stay long but be aware of whether the markets can push higher. If trading languishes in this area for most of the day, be prepared for some selling in the next couple of days.