A candlestick market reversal was illustrated in Thursday and Friday’s trading. The candlestick market reversal consisted of a MorningStar signal in the Dow that closed at the T-line on Thursday. The reversal confirmation was a positive open on Friday and trading positive. This both confirmed the MorningStar signal and demonstrated the T-line would not act as a resistance level. Additional confirmation came from a bullish engulfing signal confirming in the NASDAQ and a left/right combo confirming in the S&P 500 and witnessing the reversal signals confirming allowed candlestick investors to start moving into sectors such as artificial intelligence immediately. It also provides the mental alert that short positions should be covered and long positions being added to the trading portfolio. The visual graphics of candlestick charts cut through the hopes/expectations of existing position moves by showing precisely what investor sentiment reveals. Prices do not move based on fundamentals! Prices move based on the perception of fundamentals. The graphics of candlestick signals allows investors to make the correct investment decisions immediately. Expect the market to remain in an uptrend as long as the indexes remain above the T-line.
