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October 25th Market Wrap-Up

The strength in today's trading created bullish Harami signals. This provides a trading strategy based upon how the market indexes open tomorrow. Witnessing the premarket futures being strong would be an indication the bullish Harami's were confirming and the next likely target would be a move back up to the T-line. However, the T-line analysis is very important. Until the market indexes can close above the T-line, the downtrend is still considered to be in progress. The earning misses of Amazon and a couple other major trading stocks have them trading lower after hours, producing the likelihood that the markets will open lower tomorrow. The failure of the bullish Harami signals opening positive makes the trading below the T-line the major analytical factor, implying wave three of the current bearish J-hook pattern still in progress.

Numerous stocks traded positive today after a sharp decline over the past few days. The fact that the positive trading did not create a reversal signal maintain the suspicion that the Bulls had not yet taken control. NVDA is a good example of trading positive for the day but the negative trading after hours of some of the big tech stocks is also indicating a lower open in Nvidia. Candlestick analysis makes analyzing a price trend/stock move much more easy to analyze when you look at all the confirming indicators on a cumulative basis. The most important factor in the current market conditions is that the trading below the T line still implies a downtrend. A reversal in the markets is going to take signs of numerous bullish signals to show that the investor sentiment damage of a huge selling will take time to repair.

 

 

 

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