July 31st Daily Market Comments

Although the NASDAQ and S&P 500 closed above the T-line yesterday, the Dow still closed below the T line. This made the sideways prognosis of the market indexes the likely expectation. The Dow continues to trade lower, probably looking for support at the 50 day moving average again, continuing the sideways drifting mode of the markets. These market conditions make individual stock movements choppy, up one day down the next, making the T-line the ultimate trend confirmation indicator. Hold long positions that have not produced sell signals and are continuing to trade above the T line.