After a 1000 point drop in the Dow over the past two days, Today’s positive bounce is not unexpected. Numerous stocks have obviously gapped up Today but this makes analyzing prices easy. If prices start coming back down through the open price, it indicates the lack of bullish follow-through. The market has been in a strong selling mode. Until there is a dramatic reversal, a strong candlestick bullish signal in the indexes, anticipate the downtrend remaining in progress. This may not necessarily mean big selling days as experienced over the past two days, but some drifting lower until bullish signals start to appear. Stay predominantly short until there are definite signs of the Bulls are taking control.
December 18th Daily Market Comments
After a 1000 point drop in the Dow over the past two days, Today’s positive bounce is not unexpected. Numerous stocks have obviously gapped up Today but this makes analyzing prices easy. If prices start coming back down through the open price, it indicates the lack of bullish follow-through. The market has been in a strong selling mode. Until there is a dramatic reversal, a strong candlestick bullish signal in the indexes, anticipate the downtrend remaining in progress. This may not necessarily mean big selling days as experienced over the past two days, but some drifting lower until bullish signals start to appear. Stay predominantly short until there are definite signs of the Bulls are taking control.