And while it wasn't a downside reversal, at least not of any magnitude, the initial bullish enthusiasm right after the statement quickly reversed as I told you is often the case. We may see more as it is analyzed for every jot and tittle, but on balance, I feel today wasn't bad. I'm breathing a little easier as the market did NOT follow through on yesterday's move, although the price/volume relationships yesterday did foretell a weak breakout.
The S&P-500 was a few cents away from a Harami Reversal.
The Dow put in a narrow range day forming a Star candlestick, which is a bearish reversal sign when it comes after a prolonged uptrend like we have seen.the long upper wick shows us higher prices were tested and failed to hold.
The NASDAQ 100 put in the same Star with a little more bearish bias.
The Russell 2k put in what would be similar to a Harami downside reversal, the body of the candle was a bit too big to qualify, but the implications are similar especially considering it closed near the lows of the day-almost at them
The Nasdaq Composite did put in a Harami reversal (bearish).
The only index to close up was the Dow-30 by +.09%
The Russell had the biggest decline of -.75%
As of now the market is trading down a bit in extended trading.
So, I'm going to take a little break as this has been an intense day, then back to research and tonight's post. I have a few new ideas that we'll be looking into.
5 years ago
5 comments:
Where it was wilder was with the currencies and gold/silver.
Consumer confidence numbers down again (reported after hours):
http://www.zerohedge.com/article/abc-consumer-confidence-drops-poll-gets-downright-cynical-recession-ends-nobody-notices
From -43 to -46.
Brandt,
I know you updated GLD today, but would appreciate an update tonight after the pop in GLD after FOMC and the drop in the USD.
Thanks
Hi Brandt,
I note that looking at the FTSE using 'traditional indicators' that it looks it's ready to roll over:
Overbought RSI
MACD lines are at a high and about to cross over each other.
MA 50 day and 200 day about to cross also (by the looks of it).
FTSE is also struggling to make higher highs.
And i also think the volume has been getting weaker.
http://stockcharts.com/h-sc/ui?s=$ftse
I know you said that the powers that be use traditional charting indicators against you. But i also think that sometimes these traditional charting indicators are self-fulling. If you look at the chart, every time the MACD lines have crossed there has been a change in direction in the market price.
Your thoughts?
Mr. Pink,
I use all of those indicators, I just use them differently. I believe your edge comes from seeing that which others missed so I use really long versions of them of really short versions of them, I don't use what everyone else uses. Most of the manipulation and false breakouts we see are temporary and the market continues in the implied direction, and it is moistly price pattern based. What charting system do you use? If you had TeleChart I could show you some ways to use those indicators that would make them 2x more effective.
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