Wednesday, April 22, 2009

Stock Market Commentary: Bearish Inverse Hammer

Morning bullish enthusiasm gave way to a bearish surge into the close (and through to afterhours); the day closing with a bearish inverse hammer - the significance of which is increased at overbought market conditions. Frustrating to have seen my short stopped out by a couple of points. Will wait and see how AAPL and EBAY earnings influence tech markets in the morning but I will be looking to go short again.


A break of 1,300 in the Nasdaq 100 could see a rapid deterioration.


The last two days of gains weren't enough to reverse the trend breakdown or post a new closing high and today looked like short covering followed by new short positions. AAPL and EBAY earnings are likely to trap a lot of bulls based on their post-earnings euphoria on Stocktwits.com.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.
 
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