Although the Dow continues to trade strong today, profit-taking is evident in the other indexes. It will be important for the Dow to maintain its strength. If it starts trading lower in correlation with the other indexes pulling back, the profit-taking/consolidation would produce more prospects of profit-taking occurring over the next few trading days. Currently with the Dow trading positive, it can be assumed that money is just shifting versus pulling out of the markets. Stay long but continue to have defensive stops in place.
June 7th Daily Market Comments
Although the Dow continues to trade strong today, profit-taking is evident in the other indexes. It will be important for the Dow to maintain its strength. If it starts trading lower in correlation with the other indexes pulling back, the profit-taking/consolidation would produce more prospects of profit-taking occurring over the next few trading days. Currently with the Dow trading positive, it can be assumed that money is just shifting versus pulling out of the markets. Stay long but continue to have defensive stops in place.