The market indexes had the prospect of moving back into the flat trading range that occurred in most of the early part of May, producing a flat Frypan Bottom pattern with the hard selloff/recovery acting as the dimple. A lower close Today would make the prospects of flat trading a viable prognosis. Numerous stocks are starting to trade back below the T-line. If the market remains weak going into the close, reduced long positions. Maintaining or adding any long positions during a possible sideways market trend would require very strong buy signals.
May 31st Daily Market Comments
The market indexes had the prospect of moving back into the flat trading range that occurred in most of the early part of May, producing a flat Frypan Bottom pattern with the hard selloff/recovery acting as the dimple. A lower close Today would make the prospects of flat trading a viable prognosis. Numerous stocks are starting to trade back below the T-line. If the market remains weak going into the close, reduced long positions. Maintaining or adding any long positions during a possible sideways market trend would require very strong buy signals.