Ahhh.... Man it feels good to relax in front of my computer tonight. It's been a long day for me.
Today's Black Candlestick is an engulfing candlestick which further supports the Bearish position the candlesticks put us in a while back. It's nothing to get excited about with only a 53% chance of Bearish follow through, but it's better than a white candle.
Price has found support and needs to work through this area before proceeding to 1010, 1000 and then 950. The Bears have pushed Price down below many of the obstacles such as 50, 200 and 255 DMAs and the Daily Kumo that once stood in front of them. All except the 255DMA appear to be turning down. So long a the week finishes below 1070 the weekly candles will continue to be Bearish. The last hour of trading ended with an Inverted Hammer which has a 67% chance of Bearish continuation.
The indicators helped us out this morning when overnight Price had advanced by letting us know that it was not going to hold. They are currently bearish but turning up.
We are trading near the top of the downward forks so there is not a lot of wiggle room, but it does leave us with a further distance to drop. I don't see Price breaking 1100 but that's about the area I would turn Bullish. Friday may not break 1140 but I don't expect a rally past 1160 either. Draw your forks!
// end of recap for 2010.08.26 //
I hope to be back later tonight with a market recap. Till then here's a new fork. Confidence is high.
Downward fork reveals itself.
Tweeting today... Stay up to date with the link above
For those who have been using my Andrews Fork techniques, I want to point out that I have added a couple extra tines to the forks. The gray tines are 25% and 75%. I've found this too can help validate the fork placement along with the use of Fibonacci Fans.
I've come to rely less on indicators and more on forks and Fibonacci. But the chart shown below shows why I still use them. Price has been pushed up but the indicators are letting us know that it's not going to hold. Since shortly after the close yesterday the e-minis have been weakening while price pushes on.
The Bulls have taken the market right up to the bottom tine of the 2009 fork.