Daily Market Commentary: Black Candlesticks & Shooting Stars

Bulls couldn't hold all of their intraday gains and were rebuffed by the close. The S&P suffered a bearish 'shooting star' on higher volume right on the early November reaction high. Bears will look to short a break of Tuesday's lows.

($SPX)

via StockCharts.com

The Nasdaq finished with a black candlestick. Black candlesticks are frequently associated with market tops, but a break of Tuesday's highs would negate the bearishness typically associated with this candlestick.

($COMPQ)

via StockCharts.com

The Russell 2000 also finished with a bearish shooting star which is clearly in a position to mark a top - watch for a gap down off the open. Lending weight to this scenario is the overbought condition of technicals.

($RUT)

via StockCharts.com

Finally, the semiconductor index reversed off channel resistance.

($SOX)

via StockCharts.com

For Wednesday, watch for a gap down which would offer a respectable shorting opportunity with a stop on a break of Tuesday's highs.

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