Morning Market Update for September 26, 2013

Be careful, although the Dow and the S&P 500 trading positive Thursday, they are not backed up above the 8ema and they have not shown a reversal signal. However, the NASDAQ is forming a small separating line signal and it has not been able to get back below the 8ema. These market conditions illustrate there are some sectors that are acting strong while other sectors are acting weak. These are market conditions where it is appropriate to have both long and short positions in the portfolio. These market conditions illustrate a lack of trend, the NASDAQ is moving higher while the Dow and S&P 500 have been moving lower, a sector specific market. Take advantage of the capabilities of candlestick analysis to identify which longs and which shorts you should have in the portfolio. Have a great trading day.