If your mother does not understand what you are saying then neither do you.
Thursday, August 27, 2009
High Indecision at the Bullisht Corral
Afraid to Trade blog By Corey Rosenbloom, CMT
I’ve been mentioning over the week that the S&P 500 (and other US Stock Market Indexes) were forming dojis at their upper Bollinger Band lines on the daily charts.
As of Wednesday, we formed the dreaded “Tri-Star Doji” pattern which was last seen at the July 2009 lows prior to the 150 point rally in the S&P 500 into August.
This is a quick mid-day post, so let’s be sure to take a look at how the market closes today for confirmation, but for now, this is a bearish non-confirmation of higher prices as we challenge the upper Bollinger Band on three doji patterns, as well as a negative volume and momentum divergence.
Still no guarantee of a reversal, but odds seem overwhelming to favor a downside move.
(The upper bound looks like 1044 on a M and A top, per Jeff Cooper. My worse case is the A team doesn't have a problem paying no mind to the gap and going to the next Fib level. But the cycles are suggesting no ... we'll see. -AM)