The reversal signals last week were very apparent. The Dow started showing indecisive trading signals finally confirmed with a close below the T line. Bearish confirmation was also evident with the NASDAQ and the S&P 500 showing sell signals and already trading below the T line. This is not rocket science! These signals allow candlestick investors to start orienting their portfolio from the long side more towards the short side. The NASDAQ is likely to have more downside until it reaches the 50-day moving average. This would imply staying short until you see a level where bullish signals should appear.
Bullish candles are showing back up in specific sectors such as the biotech stocks that are related to co-vid. The new strain is starting to take effect. This was easily identified by simple candlestick scanning techniques. We will be presenting a training session in the near future that identifies when it is time to start selling, with candlestick sell signals closing below the T line or heading for the T-line. Also, it will be easy to identify which signals have the strength to not only be selling but going short.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
