Yesterday’s shooting stars in the indexes created probabilities that profit-taking would be occurring today. The most compelling factor was the NASDAQ creating a shooting star, failing right at the 50 day moving average. Today’s selling should continue to be viewed as profit-taking versus a full-scale reversal based upon the fact the NASDAQ is trading positive from where it opens today. This illustrates that buying is still continuing although the markets open lower. The Dow and the S&P 500 need to close above the T-line today to show the uptrend is still in progress, albeit very slow.
September 18 Daily Market Comments
Yesterday’s shooting stars in the indexes created probabilities that profit-taking would be occurring today. The most compelling factor was the NASDAQ creating a shooting star, failing right at the 50 day moving average. Today’s selling should continue to be viewed as profit-taking versus a full-scale reversal based upon the fact the NASDAQ is trading positive from where it opens today. This illustrates that buying is still continuing although the markets open lower. The Dow and the S&P 500 need to close above the T-line today to show the uptrend is still in progress, albeit very slow.