Thursday, August 27, 2009

Stock Market - Tight Weekly Range

Above is a weekly candlestick chart of the NASDAQ, S&P and Dow Jones Industrials. As you can see, prices are trading exactly where they opened for the week. You'll also notice the tight range we are in for the week which tells me there is not much going on. If the stock indices were to close here tomorrow that would create a doji pattern on the weekly chart.

There still is a significant bearish divergence between the Shanghai index and the S&P500 which makes me very cautious at these levels but as of now there is NO confirmation of any weakness in the market. Keep in mind the most bearish month of the year for stocks will begin in just a few days. If a sell signal triggers, I will post my comments here on this blog as always. For right now I just want you to be aware of what I am anticipating and what I am looking at before the move happens. Now it's up to the market to decide which way it wants to go.

1 comment:

Anonymous said...

I enjoy your posts very much, they are very internesting and informative. Thanks for going to the trouble. LT


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