The Doji that formed in the Dow yesterday created the suspicion that profit-taking/consolidation was likely to occur Today. Currently the Dow has pulled back to the T-line, not yet confirming any major reversal in the markets. Also, the NASDAQ has sold off hard, creating the potential of a bearish best friend signal if the 50 day moving average does not hold in the NASDAQ. The T-line remains a critical indicator. Long positions that are trading below the T-line Today should be closed out. They can always be bought back if the market moves prices back up. Obviously, the short positions are working well Today.
October 4th Daily Market Comments
The Doji that formed in the Dow yesterday created the suspicion that profit-taking/consolidation was likely to occur Today. Currently the Dow has pulled back to the T-line, not yet confirming any major reversal in the markets. Also, the NASDAQ has sold off hard, creating the potential of a bearish best friend signal if the 50 day moving average does not hold in the NASDAQ. The T-line remains a critical indicator. Long positions that are trading below the T-line Today should be closed out. They can always be bought back if the market moves prices back up. Obviously, the short positions are working well Today.