Afternoon Market Update for September 26, 2013

The selling this afternoon has created inverted hammers in the Dow and the S&P 500. If an uptrend is going to start, the markets need open positive and trade positive tomorrow, confirming the inverted hammer signal. The NASDAQ, although trading back near the lower end of its trading range is still trading above yesterday's open, followed by selling from that point. It is maintaining its uptrend by staying above the 8ema. A positive open tomorrow would be further confirmation the NASDAQ was continuing to stay above the 8ema and forming a j-hook pattern, indicating the uptrend would remain in progress. This market still does not want to move in any direction with conviction. Keep both long positions and short positions in the portfolio. Have a great trading day.