June 21st Market Wrap-Up
The NASDAQ formed a very powerful bearish reversal signal today. This is relevant because although the Dow and S&P 500 have been trading lower, up until the day the NASDAQ was trading higher, above the T line. This was an indication that the markets were not selling off, merely shifting funds from sector to sector. Although the NASDAQ did not close below the T line today, the candlestick bearish left/right combo signal is strong enough to indicate the NASDAQ is now ready for a bearish trend. This would confirm that the overall market is now heading lower. This alerts the candlestick investor to close out any long positions that were starting to show weakness/bearish signals.
However, the strength of candlestick signals and patterns can still provide strong bullish profits even when the overall market is in a downtrend. Our recommendation for CWH today was based upon witnessing the best friend signal off the 50 day moving average. Our recommendation for CRON N was based upon the expectation of positive trading after a gap up Doji. These recommendations were based upon high probability results illustrated by the Japanese Rice traders with over 400 years of observations.
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The Candlestick Forum Team
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