A question often asked, how do you analyze a trend when it keeps bobbing up and down above and below the T-line? Simple, what does that illustrate about the Bulls and the Bears? There is no decisive trend direction. Yesterday’s bullish trading produced the prospects the indexes were going to remain above the T-line. Today’s selling obviously did not confirm. This creates a market environment where each chart pattern requires good bullish confirmation to stay long and having short positions in the portfolio is prudent. If the indexes close near the low end of their trading range Today, be prepared for more sideways/indecisive market trends, until there is something relevant that creates a strong bullish and/or bearish sentiment.
March 22nd Daily Market Comments
A question often asked, how do you analyze a trend when it keeps bobbing up and down above and below the T-line? Simple, what does that illustrate about the Bulls and the Bears? There is no decisive trend direction. Yesterday’s bullish trading produced the prospects the indexes were going to remain above the T-line. Today’s selling obviously did not confirm. This creates a market environment where each chart pattern requires good bullish confirmation to stay long and having short positions in the portfolio is prudent. If the indexes close near the low end of their trading range Today, be prepared for more sideways/indecisive market trends, until there is something relevant that creates a strong bullish and/or bearish sentiment.