Eesh, Today's Bearish Candlesticks Are A Problem

I don't like seeing 'black' candlesticks as they reflect a failure of opening strength, and today was one of those days. 'Black' candlesticks are more of a problem at the end of the rally than at the start, but if we see a gap down tomorrow there won't be much support to lean on. 

The S&P and Nasdaq might yet see another test of the 200-day MA tomorrow. However, if there is a close above today's high, the bearishness of the 'black' candlesticks is negated.


Today's candlestick for the Russell 2000 (IWM) finished right on support. It's not great, but there is at least a support level to work with. Technicals haven't changed.

So, markets started positively with a gap higher, buy by the close-of-business, there was no building on opening strength. 


More By This Author:

S&P And Nasdaq Lean On 200-Day MAs
Markets Hold Breakout Support, Limited Room For Maneuver
'Bull Flag' Breakouts Hit A Road Block

Disclaimer: Investors should not act on any information in this article without obtaining specific advice from their financial advisors and should not rely on information herein as the primary ...

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