Stock Market Today - Charts are Not Looking Good
The DOW fell 23 today, while the S&P and the NASDAQ fell about 3 points each. This video from free stock trading site http://www.perfectstockalert.com/ gives an interesting take on one possible scenario in the stock market based on his analysis of the stock charts. Basically the speaker is bearish on the markets, pointing out the occurrence of inverted hammer - see inverted hammer chart pattern - and shooting star - see shooting star chart pattern - patterns. He believes the markets will eventually roll over again, and that could be quite soon.
The fundamental reason he cites is the problems in Europe which haven't gone away. The US and Canadian charts are also not bullish, with the recent rally in the markets being on very low volume. The rally has been following a trend line but that is now starting to come up against serious resistance and when the trend line starts to be pierced on the down side, then that is the time to be getting out.
He is already short himself on the markets. All the signs are there already telling you to get out and when the market falls it will fall quickly.
It has to be pointed out that lots of analysts have been bearish on the markets for quite a while now, but the markets just seem to keep grinding higher, albeit on low volume. But this slow uptrend does nto seem to be convincing a lot of people.
It will be interesting to see if the guys at perfectstockalert are right in their pessimistic analysis of the stock charts, as it would be nice to know that there are some people out there trading the stock market who actually know what they are talking about !
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