November 8th Daily Market Comments

The potential reversal signals of yesterday, Doji’s and bearish Harami’s, in the indexes provided the prospect of some profit-taking/consolidation. Today’s weakness in the markets can be construed as profit-taking versus a market reversal based upon the indecisive nature of Today’s trading. This would make the prospects of the indexes coming back to test the T-line a likely scenario. The transportation index is producing strong selling after failing to hold the 50 day moving average yesterday. Take profits on sell signals. The oil stocks traded in decisively yesterday and were closed out on lower opens today. Existing short positions should be maintained provided there are no indications of bullish reversal signals. Expect more consolidation in the markets for the next day or two.