January 19th Market Wrap-Up

Candlestick reversal signals appeared in the indexes yesterday. The NASDAQ formed a bearish left/right combo confirmed with a lower open today, closing below the 50-day moving average and the T-line. Candlestick reversal signals also formed in the S&P 500, with an evening star signal failing at the 200-day moving average and confirming today with a lower open, which closed below the 50-day moving average and the T line. A lower open tomorrow would form a Dagwood, an evening star signal followed by a bearish Doji sandwich or an evening sandwich. This makes scanning for the strong candlestick reversal signals such as the bearish best friend signal as indicated in RUN or a bearish engulfing signal followed by a gap down through the 50ma seen in AMD. Any long positions require strong bullish confirmation, continuing to trade above the T line. However, with the markets showing a more substantial bias to the downside, scanning for the strong bearish candlestick reversal signals is the logical strategy. Join us Saturday, January 21, for a full day of training on how to recognize and profitably utilize candlestick patterns. This training allows for a much more accurate assessment of the overall market trend based upon patterns and then applying that information to the most vital individual stock patterns. This process puts all the stars in alignment, greatly improving your probability of being in the correct trades at the correct time.

Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

Stephen Bigalow