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

IMPORTANT DISCLOSURE INFORMATION Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Littlejohn Financial Services), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Littlejohn Financial Services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional adviser of his/her choosing. Littlejohn Financial Services is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Littlejohn Financial Services' current written disclosure statement discussing our advisory services and fees is available for review upon request.
Comments