May 7th Daily Market Comments

Yesterday’s hammer signal at the 50 day moving average in the NASDAQ gave the prospects of the 50 day moving average going to act as support, with the next target at least a bounce back up to the T line, which is exactly where the NASDAQ is trading now. The other indexes are all showing good bullish uptrending charts. If the strength continues into the close today, obviously closing out short positions is logical. It will be important to see where the indexes close today.