As you can see from the NASDAQ intraday chart, we gapped up into pivot point resistance from yesterday's morning swing low. That was a gap fade begging to happen. Despite some intraday breaches of the PP low, we still managed a modest recovery with some signs of positive divergence of the RSI.Most major tech sectors ended the session in the green paced by biotechs and internets, but networking was a loser again today. Decliners edged out advancers by a margin of 17:14 and new lows outpaced new highs 257/85.
Tech heavyweights BIDU and AAPL performed in AH on the earnings front so we may see some momentum from that tomorrow. NB: AAPL closed AH at $150.00 despite lowered guidance. Must have been an interesting conference call.
Economic Calendar: Durable orders and initial claims in pre-market and New Home sales at 10:00
2 comments:
Jamie,
Regarding "black candles seem to signify gap higher, close below gap open", though I later learned that it is fairly standard I was utterly befuddled when I first encountered the StockCharts candle coloring scheme. And you won't find a coherent explanation on the StockCharts site.
It came up on a TraderMike comment page, and I got Mike to confirm and clarify the explanation that follows.
The color of the outline of the candle indicates whether the candle's close is higher than the prior candle's close or not. On the chart that you presented black means it's higher; red means it's lower.
Whether the body of the candle is solid and the color of the outline, or is instead transparent (or the color of the paper), indicates whether or not the candle's close is respectively below or above its own open.
So the black candle is solid black only because its close is lower than its open. Note that a few days earlier there is a hollow candle with a red outline: the close was lower than the previous close but higher than the open.
It's interesting that the hollow red and solid black candles occur as seldom as they do.
Mike,
Thanks for taking the time to explain the candle color coding scheme. Feels like a cloud has been lifted. Great stuff!
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