Warning, warning, Will Robinson! The indecisive trading in the indexes in the overbought condition, the Dow and the S&P 500 trading absolutely flat, creating Doji’s is indicating a possible change of the market trend. A logical pullback would be back to the T-line or 50 day moving average. The NASDAQ is showing potential weakness at the 50 day moving average and the downtrend of the past three months. The transportation index also showing some consolidation at the downtrending resistance level. These market conditions warrant closing out long positions that are starting to confirm sell signals and adding a few short positions to the portfolio.
October 12 Daily Market Comments
Warning, warning, Will Robinson! The indecisive trading in the indexes in the overbought condition, the Dow and the S&P 500 trading absolutely flat, creating Doji’s is indicating a possible change of the market trend. A logical pullback would be back to the T-line or 50 day moving average. The NASDAQ is showing potential weakness at the 50 day moving average and the downtrend of the past three months. The transportation index also showing some consolidation at the downtrending resistance level. These market conditions warrant closing out long positions that are starting to confirm sell signals and adding a few short positions to the portfolio.