July 6th Daily Market Comments

The magnitude of Today’s selling is negating any candlestick bullish signals or patterns in the indexes. Yesterday’s trading in the Dow formed a hanging man/Doji at the breakout area. Today’s Gap Down in the Dow is trading below Yesterday’s low of the Doji and currently trading below the T-line. A close in this area would put the markets back into a slow sideways drift at best. The NASDAQ formed a Bullish Harami Yesterday. It needed to open positive demonstrating the support level was continuing to act as support. Today’s gap down below Yesterday’s open reveals severe weakness in the NASDAQ. Unless the market indexes close near the high end of their trading ranges, especially backup above the T-line, the direction of the market will be dismally sideways at best.