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May 25th Market Wrap-Up

The politics of Washington, terrorist attacks, information security leaks! Whatever information that might be a deterrent to investor sentiment is not having an effect. What you think, what I think, what anybody thinks, should be the results of the market direction based upon the positive or adverse affect on investor sentiment based upon news events does not mean a hill of beans. The most important trend indicator is what is being conveyed by candlestick signals and patterns, the accumulative knowledge and decision-making of all investors.Today's compelling information based upon candlestick charts is the strength of bullish sentiment that continues after the gap ups through resistance levels today. The indexes are pushing and obtaining record highs. The transportation index showing a bullish Doji sandwich well up through the 50 day moving average resistance level. The uptrend continues, profit-taking is expected, but the overall market trend indicates no change of bullish investor sentiment.

There will always be market prognosticators, warning of profit-taking or market reversals of 5% or 10% magnitudes. That rhetoric was fully expressed during last Wednesday's big selloff. But there was one most compelling and accurate analysis. What did the candlestick charts reveal from day to day as to what was occurring in investor sentiment. As seen, the big selling of Wednesday was not the expected reversal of the market.

The candlestick charts revealed that it was merely a profit-taking day. Currently there are no indications of a change of investor sentiment. As long as the market indexes remain above the T line, the probabilities of an uptrend continuing is likely. The market indexes are now demonstrating J-hook patterns that have confirmed by breaking out into new territory. This also implies the uptrend should remain in progress. This simple analysis of the market indexes allows investors to exploit the high profit patterns that are developing and performing an individual stock charts.



Chat session tonight at 8 PM ET with Guest Speaker Jeff Gibby. Click here to register.

Good Investing,

The Candlestick Forum Team

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