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.


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.


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.


via StockCharts.com

Finally, the semiconductor index reversed off channel resistance.


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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