The strong gap down today in the indexes was producing a dismal prognosis for the market trend, not dramatically bearish but definitely taking the wind of the sails of the bullish sentiment. The possibility of a waffling sideways market, indicating the lack of any decisive movement for the short term. What is required to maintain any bullish trend sentiment is for the indexes to come back up and still close backup above the T-line. Until there is strong bullish confirmation, moving the indexes well backup above the T-line, the indecisive oscillating in the markets would not be unexpected, investors trying to figure out whether the recent support levels were going to continue as support. This is a long indecisive prognosis because the markets are still in the stage of figuring out whether this is merely a bounce in a downtrend or whether a new uptrend has started.
May 17th Market Direction
The strong gap down today in the indexes was producing a dismal prognosis for the market trend, not dramatically bearish but definitely taking the wind of the sails of the bullish sentiment. The possibility of a waffling sideways market, indicating the lack of any decisive movement for the short term. What is required to maintain any bullish trend sentiment is for the indexes to come back up and still close backup above the T-line. Until there is strong bullish confirmation, moving the indexes well backup above the T-line, the indecisive oscillating in the markets would not be unexpected, investors trying to figure out whether the recent support levels were going to continue as support. This is a long indecisive prognosis because the markets are still in the stage of figuring out whether this is merely a bounce in a downtrend or whether a new uptrend has started.