Readers will recall a comment made a few days ago about the Facebook IPO demonstrating "peak complacency" in the market.
Now we have two other indicators that show a strong bear market has already begun.
First let's look at Doctor Copper and see what he has to say:
Doc Copper is looking pretty under the weather after the evening doji star candlestick appeared on Jan 27th.
I like to watch for evening star patterns as they are highly reliable indicators of a downturn.
Further, Slow Stochastics has turned down, MACD is declining, and RSI is headed down.
Secondly, look at the S&P pattern that just emerged:
In this chart we see a candle stick pattern known as dark cloud cover on January 25 & 26 with confirmation of the pattern the next day.
Note that like Dr Copper, RSI, MACD, Slow Stochastics are all in a decline phase.
So it appears that the Facebook IPO will mark the start of a long downtrend, based on these indicators.
Now we have two other indicators that show a strong bear market has already begun.
First let's look at Doctor Copper and see what he has to say:
Doc Copper is looking pretty under the weather after the evening doji star candlestick appeared on Jan 27th.
I like to watch for evening star patterns as they are highly reliable indicators of a downturn.
Further, Slow Stochastics has turned down, MACD is declining, and RSI is headed down.
Secondly, look at the S&P pattern that just emerged:
In this chart we see a candle stick pattern known as dark cloud cover on January 25 & 26 with confirmation of the pattern the next day.
Note that like Dr Copper, RSI, MACD, Slow Stochastics are all in a decline phase.
So it appears that the Facebook IPO will mark the start of a long downtrend, based on these indicators.
Thank you PW always appreciate the great TA.
ReplyDeleteBill