Afternoon Market Update for Dec 02, 2013

The shooting star of Friday is now reflecting the profit-taking. The 8ema continues to influence the short trend. The Dow appears to want to close below the 8ema while the S&P 500 is not showing any dramatic selling pressure. However, the NASDAQ gapped up on Friday and formed a Doji, followed Monday by a bearish engulfing signal. Anticipate a few more days of potential profit-taking before an uptrend can continue. With signs of potential profit-taking over the next couple of days, be prepared to take profits on any charts that are showing weakness.