Daily Market Commentary: Black Candlesticks & Shooting Stars
($SPX)
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The Nasdaq finished with a black candlestick. Black candlesticks are frequently associated with market tops, but a break of Tuesday's highs would negate the bearishness typically associated with this candlestick.
($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.
($RUT)
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Finally, the semiconductor index reversed off channel resistance.
($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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