June 5th Daily Market Comments

Although the Dow and the transportation index are trading lower, the NASDAQ is still showing a very convincing bullish chart pattern, staying well above the T-line. The S&P 500 continues to trade above the T-line. This combination indicates no major change of investor sentiment in the overall market trend, merely shifting from one sector to another. Stay predominantly long but long positions still have to be scanned for strong bullish candlestick signals. Specific sectors are working, i.e. retail stocks.