August 2nd Market Wrap-up
The Dow opened and traded down 140 points on the open. Did the Bears take control? The other indexes, because of the graphics of candlestick signals, revealed the lack of selling. The NASDAQ opened at the 50 day moving average and while the Dow is trading lower, the NASDAQ started trading positive from where it opened. This reveals very important information. It demonstrates that the sellers were not controlling the whole market. It is much easier to see when and if the Bulls for the Bears are in control based upon the clarity a candlestick formation reveals. Today's trading created a bullish left/right combo off the 50, up through the T line, in the NASDAQ. This clearly indicated again the 50 day moving average was going to act as support in this uptrend. The candlestick investor would've also recognized a bullish engulfing signal in the S&P 500, also closing above the T line. Although the Dow closed slightly lower on the day, the graphics reveal to relevant factors. One, it closed above the T line and two, it closed above where it opened indicating buyers were still present going into the close. The graphics of candlestick signals reveal an immense amount of information about investor sentiment, providing much more accurate trend analysis.
Additional logical evidence that the markets have not reversed was illustrated in the well followed stocks. TSLA traded up almost 50 points today. AAPL reached at all-time high after yesterday's best friend signal. If there was evidence of sellers taking control, these large bullish moves would not be occurring. The strong patterns, such as the scoop pattern, will work much more effectively when the markets are not showing any signs of bearish sentiment. These patterns provide inordinately large profits versus merely study uptrending stocks during an uptrending market.
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The Candlestick Forum Team
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