Cohns resignation has caused the knee-jerk selloff today. Knee-jerk? With the Dow down 163 points, this is approximately one half of the selloff from what the premarket futures were indicating most of last night. The candlestick chart reveals an indecisive formation, a hammer type signal, based upon the Dow trading at the top end of the range so far today. An unofficial indicator, yet graphically obvious to the candlestick investor, is the fact that stocks that were in a bullish trend are holding up reasonably well on this pullback, some even trading positive, AAXN, SQ, while the bearish charts gains strength to the downside. It will be important to see if they close the indexes near the top end of the trading range or near the bottom of the trading range today. That will provide much better clarification as to whether the uptrending channel is maintaining or the Bears are starting to take control. Be ready to close out long positions if there is no evidence of buyers going into the close.
March 7th Daily Market Comments
Cohns resignation has caused the knee-jerk selloff today. Knee-jerk? With the Dow down 163 points, this is approximately one half of the selloff from what the premarket futures were indicating most of last night. The candlestick chart reveals an indecisive formation, a hammer type signal, based upon the Dow trading at the top end of the range so far today. An unofficial indicator, yet graphically obvious to the candlestick investor, is the fact that stocks that were in a bullish trend are holding up reasonably well on this pullback, some even trading positive, AAXN, SQ, while the bearish charts gains strength to the downside. It will be important to see if they close the indexes near the top end of the trading range or near the bottom of the trading range today. That will provide much better clarification as to whether the uptrending channel is maintaining or the Bears are starting to take control. Be ready to close out long positions if there is no evidence of buyers going into the close.