anyone agree with me that the dow/ndx qqqs should fall? Looking at the NDX chart I see an exhaustion "exhaustion gap". Meaning which is often when "all the news" is released that then explains what the MARKET was really acting on to begin with. It is often thought that this "climax stage" is where the bulk of the SMART MONEY bails out and then DUMB MONEY, or LESS KNOWLEDGEABLE, which has been watching the move, but never took action, finally becomes convinces the last tidbit of information, which in essence "confirmed" what SMART MONEY knew all along. The "exhaustion gap" often comes at the end of the move as all the news is now known (good or bad) and SMART MONEY gets out of the trade with big profits and moves on. Reflected in the COT #s.
Technically this was a reversal day. The extremely high pole on Friday's candle is normally a clean sell signal. Especially if it comes at the end of a rally. Check out the candles on 9/11, 12/2, 4/7. In candle stick charting the candles from Friday and April 7th are called a Gravestone Doji. The market gaps open above the previous day's close in an uptrend. It rallies to a new high then loses strength and closes near its low. This represents a bearish change of momentum. Confirmation of this reversal is an open below the candle body on Monday. That would be under 9040 for the Dow. http://stockcharts.com/def/servlet/SC.web?c=$INDU,uu[w,a]dacaynay[dd][pa9053!c20 !f][iLa12,26,9]&pref=G
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