June 8th Market Wrap-Up
After a big political day, the markets did not appear to be adversely affected. The Dow is forming another Doji day once again using the T-line as a support level. The NASDAQ is trading higher but also doing a Doji pattern. Continue to stay long but be very conscious of the T-line, it should be used as a definite stop loss level. The markets remain in an uptrend as long as they do not close below the T-line over the next couple of trading days.
The Comey hearings produced a significant result. Absolutely nothing! That was conveyed in the reaction of the markets. The strength of the uptrend is still going to be the political fighting in Washington DC that does not let the market become exuberant. The underlying confirmation that investor sentiment continues to move positive is the fact that the markets have not been able to close back below the T-line. Not only have they not been able to close below the T-line, but numerous times it can be witnessed that the T-line acted as the support on pullbacks and bullish sentiment moved the markets backup above that level. When the T-line is acting as support at the lows of the day, it illustrates there has not been any change of investor sentiment during the current uptrend.
The slow uptrend allows for the big price moves to be identified based upon candlestick chart patterns. EDIT was recommended today based upon a bullish Harami followed by a gap up through the T line. The overall chart pattern was revealing a scoop pattern set up, making a strong uptrend very likely. It is the visual identification of what reoccurs in human nature allows the candlestick investor to not only be in the right direction at the right time but also in price moves that are going to move extremely strong as long as the overall market conditions do not show a dramatic change of investor sentiment. It does not require a strong bullish or bearish trend in the markets in general to identify which individual stock charts are producing highly profitable candlestick patterns.
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The Candlestick Forum Team
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