Today’s bullish trading is significant, it is bringing the NASDAQ and transportation index backup above the T-line. The S&P 500 is trading right at the T-line, but the Dow is still trading below the T-line. This implies a possible reversal of the downtrend, however the final criteria is the close above the T-line. It will be important to see how the indexes close going into the end of the day. Keep in mind, a downtrend usually experiences buying in the morning followed by selling later in the day. Any long positions established today need to be watched.
May 20th, 2016
Today’s bullish trading is significant, it is bringing the NASDAQ and transportation index backup above the T-line. The S&P 500 is trading right at the T-line, but the Dow is still trading below the T-line. This implies a possible reversal of the downtrend, however the final criteria is the close above the T-line. It will be important to see how the indexes close going into the end of the day. Keep in mind, a downtrend usually experiences buying in the morning followed by selling later in the day. Any long positions established today need to be watched.