April 26th Market Wrap-Up
The strength in today's trading brought the indexes back up through the T line. This is a good bullish indication based upon the best friend signals, Doji's followed by a gap up today. This does not necessarily mean an uptrend is in progress, it merely indicates the sideways mode of the market remains in progress. A true indication of a new bullish trend will require breaking out through the current resistance level. Otherwise the sideways/wedge formation will still be the predominant analytical factor. However, the strength of today's best friend signal provides a good indication that bullish strength should be influencing the current trading, making a breakout through the wedge formation a likely probability.
The MorningStar type signal can be seen in the indexes as well as ETF's, indicating there has been a strong bullish reversal. Any short positions require staying below the T line without any evidence of bullish reversal signals. These market conditions make having both long and short positions in the portfolio the most viable strategy. The kicker signal is still providing some very strong bullish trade set ups. Because the markets are not showing any massive selling pressure, candlestick signals become more relevant when there is no evidence of the overall market trying to head down.
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The Candlestick Forum Team
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