The failure of the indexes staying above the T-line in Friday’s trading was an indication the bullish sentiment was not strong enough yet to start an uptrend. Today’s lower trading, indicated by opening lower after Friday’s Doji’s in the indexes, made it apparent the T-line was still acting as a resistance level. Although the markets are currently trading above where they opened, the strength of the buying has not yet produced evidence a new uptrend has started. The T-line remains a very relevant factor. Continue to have both long and short positions in the portfolio.
May 20th Daily Market Comments
The failure of the indexes staying above the T-line in Friday’s trading was an indication the bullish sentiment was not strong enough yet to start an uptrend. Today’s lower trading, indicated by opening lower after Friday’s Doji’s in the indexes, made it apparent the T-line was still acting as a resistance level. Although the markets are currently trading above where they opened, the strength of the buying has not yet produced evidence a new uptrend has started. The T-line remains a very relevant factor. Continue to have both long and short positions in the portfolio.