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TriStar Doji on SP500 August 27

TriStar Doji on SP500 August 27

Courtesy of Corey at Afraid to Trade

I’ve been mentioning over the week that the S&P 500 (and other US Stock Market Indexes) were forming dojis at their upper Bollinger Band lines on the daily charts.

As of Wednesday, we formed the dreaded “Tri-Star Doji” pattern which was last seen at the July 2009 lows prior to the 150 point rally in the S&P 500 into August.

Let’s take a quick mid-day Thursday look at this development to see if the bearish signal will hold.

See my prior two post on this pattern for more information:

“Dojis at the Highs – a Look at DIA, QQQQ, and SPY”

This is a quick mid-day post, so let’s be sure to take a look at how the market closes today for confirmation, but for now, this is a bearish non-confirmation of higher prices as we challenge the upper Bollinger Band on three doji patterns, as well as a negative volume and momentum divergence.

Still no guarantee of a reversal, but odds seem overwhelming to favor a downside move to challenge the 1,000 level at a minimum to see if that can hold as support.

Stay tuned!

Corey Rosenbloom, CMT

 


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