Check of Index Charts

By | September 30, 2014

The action in the DOW today was the reverse of what we saw yesterday in the index. The rally off the lows in the Monday session formed a hammer-like candle, or possibly a hanging man candle, and the reversal off the highs today formed a shooting star candle. This candle suggests rejection and is considered a bearish signal. The juxtaposition of these candles illustrates the literal day to day oscillations seen recently in the market.
The S&P 500 is back below its 50 day moving average, with the NASDAQ finishing right on that average, and the Russell 2000 closing on its low for the day, and back below its August lows.
This is not constructive action as these indices struggle to hold current levels, stabilize, and eventually return to trend.

30. Indices CHART

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