May 25th Daily Market Comments

The candlestick reversal signals of the past few days are now being well confirmed. The NASDAQ as gapped up again after buy signals, indicating more upside potential. The buy signal in the Dow closed at the 50 day moving average yesterday. Today’s positive trading is taking the Dow up above the 50 day moving average and breaching the downtrend channel. There is now a good probability the indexes will come back up to the trajectory of the uptrend that was in progress prior to the pullback starting in mid April. Stay predominantly long.