May 16th Daily Market Comments

The bullish engulfing signals formed in the indexes yesterday, at likely support levels, are confirming Today. Confirmation required bullish trading and not resisting at the T-line. AMZN formed a bullish left/right combo right at the 50 day moving average. Numerous other stocks formed bullish signals at likely support levels. Today’s evaluation requires seeing the indexes maintaining their strength into the close, closing above the T-line. The Dow, confirming the bullish Harami right at the 200 day moving average, was a good indication that was where buying decisions were being made. Adding long positions today still requires the market indexes closing above the T-line. That would produce a high probability the pullback is over.