14 replies to this topic

[TechMan]

I had pointed out QQQQ’s 2-stick Doji Star pattern on Thursday. Doji Star pattern requires a forceful move on the 3rd candlestick to confirm that the bears have taken over. But, instead of having a large black Marubozu stick or a gap down to form a reliable Evening Doji Star bearish reversal pattern, QQQQ had another Doji on Friday. Now, we have Double Doji Stars.

This means the next move (up or down) will be a powerful one. Combining that with a NR7 day on Friday, it’s reasonable to expect the next candlestick will be a convincing Marubozu, be it black or white.

With the RSI’s 9-day Bollinger Band Width in the tank while the 9-day RSI above 85 and a 9-day ROC hitting lower highs, the up side may be very limited.

[SemiBizz]

If it follows the recent pattern... it resolves with yet another gap up...


http://bigcharts.mar...&mocktick=1.gif

[TechMan]

If it follows the recent pattern... it resolves with yet another gap up...

Except that the prior RSI was not as overbought and the ROC was in an uptrend.

[tommyt]

there has been a rotation away from the big naz leaders the last 2 days...in a big bull run, most groups have their day, which is happening now. Those Doji's have meaning for naz, but SPX and RUT did not have similar candles. The next bears hope is a giant bear divergence which may/may not develop, too early to say, and from what level is unknown:

SPX

RUT

[TechMan]

there has been a rotation away from the big naz leaders the last 2 days...in a big bull run, most groups have their day, which is happening now. Those Doji's have meaning for naz, but SPX and RUT did not have similar candles. The next bears hope is a giant bear divergence which may/may not develop, too early to say, and from what level is unknown:

SPX

RUT

No, but they've all had similar bearish Candlestick patterns in the making...

RUT = Bearish Deliberation
SPX = Bearish Deliberation
DOW = Doji Star

So, Monday will be an important Candlestick day...

[SemiBizz]

You

[SemiBizz]

Can expect a test of the last high volume low under 52.5 on any sustained weakness, but there's not really any weakness here yet. We have quality of volume here going up. The Narrow trading range days are an indication of overall compression on the daily. We can characterize the present behavior as bullish compression because each instance results in a move higher. Most of the pullbacks are flat. The gap ups and flat retracement is what we expect in a FAST MARKET RALLY. So in order for it to go MUCH LOWER here and test that 10/30 low under 49, it has to descend below 52.5 and close there somewhere at a minimum.

[TechMan]

You

[SemiBizz]

You

keyboard error... affix to following post.

[TechMan]

The gap ups and flat retracement is what we expect in a FAST MARKET RALLY.

So in order for it to go MUCH LOWER here and test that 10/30 low under 49, it has to descend below 52.5 and close there somewhere at a minimum.

Yup, so far that seems to be the case except I think you meant 9/30. Anyway, I know what you're saying - somewhere around that end of September and beginning of October support area.

Edited by TechMan, 06 November 2010 - 08:58 PM.