Today’s positive trading is confirming the trend being above the T-line. However, there is one minor skepticism. The Dow and the NASDAQ started showing bullish direction but without a candlestick reversal signal. The S&P 500 is coming up off a bullish Harami. Because of the lack of a strong reversal signal in the Dow and the NASDAQ, the prognosis would imply an uptrend but expect some pullback at the first signs of selling. But as long as the overall trend remains above the T-line, the analysis might be profit-taking initially back to the T-line and then watch for another bullish reversal signal. Bottom line, if you’re long, still look for some oscillation in the uptrend. In other words, be careful.
November 1st Daily Market Comments
Today’s positive trading is confirming the trend being above the T-line. However, there is one minor skepticism. The Dow and the NASDAQ started showing bullish direction but without a candlestick reversal signal. The S&P 500 is coming up off a bullish Harami. Because of the lack of a strong reversal signal in the Dow and the NASDAQ, the prognosis would imply an uptrend but expect some pullback at the first signs of selling. But as long as the overall trend remains above the T-line, the analysis might be profit-taking initially back to the T-line and then watch for another bullish reversal signal. Bottom line, if you’re long, still look for some oscillation in the uptrend. In other words, be careful.