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)