Daily Market Commentary: Black Candlesticks Abound
($SPX)
via StockCharts.com
Where it got dicey was with Tech and Small Caps. The Nasdaq and Nasdaq 100 finished with black candlesticks at overbought stochastics. Such setups are typically followed by gap downs and a lower close. The Nasdaq 100 is perhaps the most vulnerable to a pull back tomorrow.
($NDX)
via StockCharts.com
Small Caps and Semiconductors, while also finishing on black candlesticks, are not as vulnerable to a sell off tomorrow because their respective black candlesticks are not isolated at the top of a rally.
($RUT)
via StockCharts.com
Tomorrow will likely see Tech weakness which may spread to Large and Small Caps. Today wasn't quite the test of 200-day MAs I was looking for so maybe tomorrow won't be the horror show black candlesticks tend to produce.
Follow Me on Twitter
Build a Trading Strategy Business in Zignals
Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.
Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!