October 9th Daily Market Comments

Yesterday, the low of the long legged Doji that developed in the NASDAQ supported at approximately the same level that the markets hit their lows in late July. Today’s positive trading in the NASDAQ is creating the potential of a bullish left/right combo. However, it needs to trade near the high end of today’s trading range to provide better confirmation the Bulls are taking control. Two things that create suspicion. The NASDAQ has bounced up and appear to have failed at the 3T-line. Also, the stochastics have turned up but not yet having reached the oversold conditions. This analysis should make you prepared for a possible bullish reversal but it still requires bullish confirmation. The Dow is currently trading lower after failing at the T-line Today and the transportation index appears to be in a dumpling top pattern. The Bulls have not yet reversed the downtrend.