Trading Alert.....New Positions possible this afternoon

After trading higher overnight, the Dow opened up nearly 50 points and then sold off.  as this is written, the Dow is up 22 and the SPX is up 1.25.  The Transports, which were the best performing indexes yesterday in the decline, being up almost 0.50%, today is up only 0.04%.  This is again another day to be very cautious...

The DOW, the IWM, the SPY and the Q's have formed nearly perfect Inverted Head and Shoulders patterns, which have a habit, although not perfect, of breaking to the upside.  Which gives me pause with the new Momentum Change signal generated Monday and Tuesday and why I feel this maybe a whipsaw.

On the other hand, the Transports have been leading the market the past few weeks, but when the chart is pulled back to a 3 year look, the resulting pattern is not very pretty.  At least not pretty if I am looking for confirmation that the market should rally from here.

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Now if the Transports looked like the Q's, I would be a happy camper.

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Stay tuned, we may get some guidance this afternoon, in which case I will have some trading ideas.

Best To Your Trading!

Bill