Tuesday, June 03, 2008

Falling three methods; more downside to follow...

After a scorcher of an Irish bank holiday it's back to the fold. There was no Stockcharts.com review for this week because of the holiday. Yesterday was a tale of moving average resistance and bearish candlestick patterns. The Dow showed the clearest bearish pattern with a Falling Three Method candlestick combo suggesting a measured move target down around 12,055.


The S&P tells a similar picture to the Dow; its downward projection is around 1,339. The Nasdaq is in battle royale between the 200-day MA and rising support connecting Mar-Apr-May lows - no clear winner yet:


Volatility is on the rise, favoring further short term weakness. My earlier assertions look to have played themselves out:




Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
 
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