The Doji

posted Jul 25, 2014, 10:18 AM by Katie Shook

Friday July 25, 2014

Thursday’s price action was concerning in the short-term.  The S&P500 formed a doji pattern very near the 1985 technical resistance level.  This candlestick pattern is typically a capitulation point often followed by a move in the opposite direction of the current trend.  Looking at the charts, this could indicate a short-term reversal.  Should this materialize we would likely move toward the low 1970′s.

Doji Pattern

Momentum has been strong for a long time — and can continue to climb — nonetheless, there are a number of technical indicators I track that point to a short-term over-bought condition.  On the flip side though, there aren’t many indicators that there is a big drop on the horizon either…  other than superstition that “we’re do.”  Which is, admittedly, a pretty weak form of analysis.   I’ll take process over superstition personally.

Daily Digits

Daily Digits 7-25-14

Weekly Estimated Range

Weeklies 7-25-14

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