Yet another crazy day of trade in the markets today. Yesterday I said that I didn’t believe that we needed to wait for confirmation, apparently we did. We are still showing a potential reversal with the pattern that emerged today.
The really cool thing about candlestick charts is that they have an additive property. Basically, if you can’t see a clear pattern in a single day candle you can take the previous two, or three, and combine them to form a clearer signal.
Don’t forget to mind your indicators. All three indicators that I use are still saying bear. What we need to see in order to begin a short term reversal is to get a closing price above the high of the combined pattern (called a doji) which is still at the highs from the past two days (1170ish). We may see this tomorrow, or we may see another hammer or slight uptick to close the huge distance between wherever we open and the highs of the past two days. Or, we may continue down. I’m sorry that I can’t tell you more specifically. I will update you as soon as I know for sure.
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