Friday, November 30, 2012

Indecision - SPY


Like the fiscal cliff debate in the US capital the market can't seem to make up it's mind. Yesterday there was a big reversal, but today there is indecision. The candlestick pattern of a Doji Star occurred today, it marks prices both higher and lower than the open, but finishing in almost the same position…a mark of indecision and a potential change in trend. The trend line on the weekly chart was clearly broken this fall, and the market is waiting for a resolution from the US government. Hard to tell which way we are headed at this point, the trend and patterns aren't great but the RSI and MACD are pointing up. To me it feels like this market can move lower….

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