Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Bearish Candlesticks Creep In But Technicals Remain Net Bullish

Published 05/15/2018, 12:30 AM
Updated 07/09/2023, 06:31 AM

Friday's action was a case of status quo, but Monday pushed things more toward the bear's favor; the series of doji and one gravestone doji are more in line with a swing highs. It does give the bulls a chance to negate what are typically bearish signals, particularly as these rallies are still relatively young.

The gravestone doji manifested itself in the Semiconductor Index. While yesterday's action also marks a short-term breakout, it's looking more likely to be a swing high; look for a gap down today (to leave a potential bearish 'evening star').

SOX Daily Chart


The Russell 2000 had a more bearish close (not quite an engulfing pattern), enough to confirm resistance at the last swing high in January. A push back to the 20-day or 50-day MA would be welcome. Technicals are all net bullish so the expectation is for an eventual breakout to new all-time highs.

RUT Daily Chart


The S&P 500 expressed a narrow doji just above the April Spring high on bullish net technicals. The picture still looks good for bulls even if yesterday was a bit of a non-event for the index.

SPX Daily Chart


The NASDAQ tagged resistance but was unable to break through; it tagged a minor resistance level but a move to challenge the 'bull trap' would bring the index in line with the Russell 2000.

COMPQ Daily Chart


For today, indices have work to do to negate yesterday's generally bearish setups and break out out higher. Bulls can be aggressive in working for a breakout but even if today sees a lower finish it won't take long before a support level is hit.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.