Afternoon Market Update for August 20, 2013

With the markets in the oversold condition, expectation of at least a bounce was not out of the realm of possibilities. The Dow has formed a bullish Harami Tuesday and the NASDAQ is confirmed in inverted hammer signal of Monday. Obviously this implies that the selling has stopped and the buying has started. Long positions can be added to the portfolio, short positions require the lack of bullish signals. Any buying in this area still requires bullish confirmation Wednesday. The oversold conditions were the alert that there might be at least a bounce in this area. The 8ema once again becomes a very predominant indicator as to whether the uptrend is back in progress. Have a great trading day.