Sp500 Prints Weekly GraveStone Doji as of September 23 2010

As of today the weekly sp500 candlestick is displaying as a gravestone doji.  This weekly candle has the potential to imply very bearish follow through action assuming we get a weekly close next week under this weeks low to confirm it.

If the market manages to get a very strong rally tomorrow then it could completely change the weekly gravestone doji into something else.  But for now it is showing this bearish looking weekly gravestone doji.

Tomorrow still has the potential to be quite bullish since the pull back to support so far has been text book.  I indicated that only a break below 1120 would start to turn the market much more bearish.  Today we held above that level.  Today’s action still looks like a normal retest of support after the breakout earlier in the week.  Volume was somewhat normal and within range on the SPY ETF and not extreme in terms of downside volume.

Still, I am maintaining the BOT short signal I issued two postings ago.

It could be that the most significant bearish action is to take place next week if we can maintain the gravestone doji formation.

But the market still has a chance of maintaining a bullish posture if we rally tomorrow and then rally again on mutual fund Monday next week AND somehow manage to hold 1120 on the sp500.

sp50020100923

This has the potential to be a very important top, but again confirmation is needed with a next week close below this weeks low. . .

Posted in Market Timing, SP500
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One comment on “Sp500 Prints Weekly GraveStone Doji as of September 23 2010
  1. Geoff says:

    Your graph is interesting. Many many years ago, i noticed what I thought was what I called a “fish hook” pattern. Your graph reminds of the fish hook. I noted that frequently the fish hook would lead to another sharp leg down. HOWEVER, whenever i thought i had identified a fish hook pattern in the process of forming, I was invariably wrong.

    Your analytical style seems to be presume something is going to happen the next day or the next several days. Almost invariably (at least over the past 3 months or so) it does not develop as you have supposed.

    It is a wonder you are not getting a little gun shy and I recall one post you made about 2 months ago, where you titled it something like “Fade Me”.

    Personally, I am bearish. The Nasdaq seems to be being supported big time by a very few stocks – – Apple, Amzn, Google and they have extremely high slow stocs (90 or thereabouts)

    Here is hoping that the market braces for some realism. I think the Sept Unemployment may be next Friday but it also may be the following week since next Fri is Sept 1 only. The stance of China and other nations against China is getting interesting. The vice premier or premier of China was reported to have said that to revalue their currency would cause bankruptcies in China. I suppose, the USA position could be that not revaluing causes bankruptcies here. Also, there is the brohaha over the South China Sea. It seems to me that any hint of potential trade war and markets swoon big time. Tomorrow, I think the House of Reprsentatives votes on encouraging the Obama Admin to take a more aggressive stance against China currency manipulation. Just lots of things to worry about, that in my opinion goes way way way beyond the proverbial “Wall of Worry”.

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