The downtrend in the market indexes were illustrated by the fact that they could not close above the T line. Currently, there has been buying at support levels, the NASDAQ opened at the 200 day moving average on Friday and traded positive. The Dow closed as a hammer type signal above the 50 day moving average. This implies there might be some basing in this area but stochastics are still in a downtrend. In these market conditions, simple candlestick scans identify that there are both good long positions and good short positions.
The home improvement sector is still trading lower, HD, LOW, LOVE, LL, FND. Retail apparel stocks are selling off, SCVL,BKE, CHS, ROST, GPS, LULU. Oil stocks continue to maintain strength with crude oil trading back up over $84 a barrel.OIL,RES, LBRT,NBR, PTEN, LPI, MTDR. Although the general market indexes are having a downward trajectory, there is the probability of bounces in the downtrend. The T line works extremely well in conjunction with candlestick signals for maintaining good long or short position trends.
