Tuesday, March 27, 2007

NASDAQ Technical Picture - Bearish Hanging Man Pattern Confirmed

Yesterday, I noted that the candlestick was either a bullish hammer or a bearish hanging man. For a hammer we would have expected continuation as it closed on its highs. Today's gap down which failed to attempt a gap fill confirmed the negative posture and the hanging man. I was expecting this because as noted last night, yesterday's morning selling took place on higher volume than the afternoon rally.

The blue line segments represent pivot points which could provide support. So far, there is nothing to signal a steep pullback here, just enough to work off the overbought posture.

Economic calendar: Durable orders at 8:30; and Crude inventories at 10:30.



Nice trade on AAPL. Is is possible to post entry points during the day?

Jamie said...

Sorry WS,

Blogging during the trading day is too distracting because I'm usually following 50-60 charts as well as a multitude of scans.

Michelle B said...

Jamie, great wrap up on the market. Keep in mind that Bernanke will be speaking in Congress starting at 9:30 on Wednesday.

Jamie said...

Good point Michelle, thanks for the reminder.