Category Archives: Market Overview

Not Another Index Doji!

I know what you’re thinking, “Please no more closing posts, updating the latest doji sighting on the index charts.” Today, however, there was a very rare one and it needs to be noted. A tri-star pattern formed on the S&P 500 daily chart. This is simply three consecutive, narrow opening and closing range or doji… Read More »

Index Indecision

The S&P 500 Index and the NASDAQ Composite had very narrow opening and closing ranges today, forming doji candles on their daily charts. These candles suggest at the least, that traders are conflicted about short-term market direction and they reflect indecision. The Russell 2000 formed a tweezer or two-day reversal pattern, a large white candle… Read More »

Index Indecision

Call them “dojis” or “spinning tops,” the narrow opening and closing ranges on the daily candles of the major indices, reflect indecision. Traders are unsure about the effects of revisions in Federal Reserve policy going forward, and this perplexity is not a good thing as the markets attempt to make new highs.

Fading Candles on the Major Index Charts

A very interesting series of candle closes occurred on the charts of the major U.S. indices on Friday. The DJIA closed above its open and in upper candle range, the S&P 500 index closed above its open in mid-to-upper candle range, the NASDAQ Composite closed below its open in mid-to-lower candle range, and the Russell… Read More »

Hammer Time for DJIA and S&P 500

The intraday reversal formed large hammer candles on the DJIA and the S&P 500 charts. A hammer is considered a bullish reversal candle, hence the term “hammering” out a bottom, but like all candle or price patterns, they require confirmation. If we get some follow-through in coming days, the August lows will be the first… Read More »

Fibonacci Support Levels on Index Charts

Fibonacci retracement levels measured off the range for the year suggest potential layers of support for the major stock indices. Several are being reinforced by their respective 200 day moving averages and previous important lows. As far as resistance is concerned, its all about the 50 day moving averages, but one step at a time.