After the market indexes have supported above the T-line for the past six weeks, today’s bearish trading in the markets has to be watched to see where the markets close. Obviously a close below the T-line would indicate a change of investor sentiment. The likely prospect would be the Dow and the S&P 500 retracing back to the 200 day moving average to test it to see if it was going to act as support. This would imply a few days to the downside. If buying comes in before the end of the day, bringing the indexes back up above the T-line, expect the uptrend to remain in progress.
November 9th Daily Market Comments
After the market indexes have supported above the T-line for the past six weeks, today’s bearish trading in the markets has to be watched to see where the markets close. Obviously a close below the T-line would indicate a change of investor sentiment. The likely prospect would be the Dow and the S&P 500 retracing back to the 200 day moving average to test it to see if it was going to act as support. This would imply a few days to the downside. If buying comes in before the end of the day, bringing the indexes back up above the T-line, expect the uptrend to remain in progress.