Although this week is not a relevant trading week because of the holiday in the middle of the week, there is evidence that investor sentiment is changing, producing a market top. A typical investor sentiment price move is when a pattern such as a J-hook pattern is set up, as illustrated in both the Dow and the NASDAQ but fails to reach a new high. This now becomes the prospect of a double top versus a pattern breakout. The substantial employment numbers provide the prospect of the feds raising interest rates to slow down the economy. However, simple scanning techniques allow for identifying which strong bullish moves are still in progress and the best bearish moves if this market continues its downward trajectory.
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Good Investing,
Stephen Bigalow
