September 6th Daily Market Comments

Yesterday’s breakout of the sideways channel in the indexes indicated a new bullish dynamic in the markets. So far today, the early consolidation was not unexpected but since that early selling stopped, a slow steady uptrend has continued in the market. This is providing a solid trend that is allowing current recommendations to perform. CLDR indicates a 45°, strong uptrend. LCI 45° is now exhibiting possible exuberance. Watch for profit-taking sell signals. The gap up through the resistance levels in yesterday’s trading reveals a strong potential of a new wave to the upside. The portfolio bias should be predominantly long but short positions are still working well.