I just finished an extensive post about Andrews Pitchforks so I'll limit this recap to candle sticks.
Friday closed with a High Top candle creating a Bullish Meeting Lines. This bullish pattern has a 56 % chance of reversing the short term trend on Monday, and with confirmation this pattern has an 80% chance of a market reversal.
The Weekly chart below shows a Black Doji. This shows the uncertain mood of the market. Often a Doji will be warning and not the last candle of the trend.
This chart shows Price having touched the target but often the fork will be touched more than once before reversing.
In conclusion it appears a bearish reversal is close at hand. This week may be a test of our patience. Keep in mind there is a lot of support down to 1080 and when this support breaks it will probably break hard.
// End of market recap for 2010.07.30 //
So far the forecast is right on target. Price is up against the Hourly Kumo and the Daily Kumo. With two Kumos sharing the same level I expect a bounce but should the Bears pull the market into the hourly and below the Daily Kumo it will then encounter the recently repositioned Cyan Fork. While this fork may not be at an optimum position it will present a line of influence.
Once below this confluence of clouds the next level of support will be 1065. This level may not present a strong support but it will be at the least a pause worth noting.
This morning I placed a red oval near the 1094 level as a prediction for Fridays close. So far it appears to be right on.
DDF is neutral.
Giving the Bulls the benefit of doubt; Ive moved the Cyan Fork - Dark Blue is yesterdays position of the Cyan fork.
The White fork is drawn per my personal interpretation and not by conventional placement.
The red oval is a guess for the close.
Expecting a pause at 1088.32