Although the markets are up strong, the Dow trading higher is still not producing a strong indication yet. It is having trouble get up through the T-line. However, the NASDAQ, S&P 500, and the transportation index are currently showing good strength after the Doji type days yesterday and now trading backup above the T-line. This will be good verification that the past few days of selling in the markets was merely profit-taking/consolidation, provided those three indexes do close above the T-line Today. Stay predominantly long but make sure the bullish sentiment stays in the market going into the close Today.
May 3rd Daily Market Comments
Although the markets are up strong, the Dow trading higher is still not producing a strong indication yet. It is having trouble get up through the T-line. However, the NASDAQ, S&P 500, and the transportation index are currently showing good strength after the Doji type days yesterday and now trading backup above the T-line. This will be good verification that the past few days of selling in the markets was merely profit-taking/consolidation, provided those three indexes do close above the T-line Today. Stay predominantly long but make sure the bullish sentiment stays in the market going into the close Today.