June 29th Daily Market Comments

The market indexes are illustrating that although they are in a downtrend, trading below the T-line, the downtrend is not a full conviction selloff. The Dow may be illustrating a bullish Harami after it tested the 50-day moving average as a support level on Friday. This does not necessarily mean the downtrend is over, but the nature of the market, up one day, down the next day, is demonstrating the bearish sentiment is not very compelling. These market conditions still warrant having both long and short positions in the portfolio.