Second gravestone doji for Dow Industrials Average

It was a bit of a mixed bag for the indices. The Dow Jones Industrial Average posted a second gravestone doji following the earlier one at the start of May.  The index is still above trendline support, lead moving averages (20-day, 50-day and 200-day MA) and technicals are net positive - including relative performance - but two gravestone doji at a peak are a potential concern.

The Nasdaq didn't do a whole lot today, but it remained below resistance. Technicals were mixed and today could be considered a bearish engulfing pattern but it didn't occur on overbought stochastics.

The Russell 2000  is working towards a challenge of the March 'bull trap', but it's not there yet.  Technicals are net bullish but the index is still inside its trading range.

For tomorrow, we will be looking for further losses in the Dow Industrials and a pending breakout in the Russell 2000; one, both (or neither) of these events may happen - but that's what's in play at the moment.

You've now read my opinion, next read Douglas' blog.

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Investments are held in a pension fund on a buy-and-hold strategy.

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