October 8th Daily Market Comments

Today’s consolidation is not unexpected in the major indexes after the strong move of the past two days. The transportation index trading up solidly is a good indication the other indexes are just resting. The the 50 day moving average will still be a level of contention for the Dow. It needs to get through that area to reveal the lack of resistance. Be oriented toward the long side. Most of the short positions should have been closed based upon the bullish reversal signals in downtrends.