June 4th Daily Market Comments

After yesterday’s Doji in the oversold area of the Dow, Today’s gap up/best friend signal has brought the Dow right back up to the T-line. The S&P 500 is also forming a best friend signal and still has some more upside to get to the T-line. The NASDAQ is currently trading near yesterday’s open after gapping up. This could be the bottom reversal signal. However, “could” is the qualifying word, the T-line still needs to be breached to indicate the confirming change of investor sentiment. It will be important to see how the indexes close Today but the magnitude of the buying at least reveals bullish sentiment starting at these levels. Short positions need to be scrutinized today to see if they are creating bullish signals in the oversold area, ready to be closed out.