Hi Jerry,
When I look at candlesticks, I look at the patterns, and the support/resistance levels. My theory is that a bullish/bearish candlestick carries a lot more weight at the right places. I also like to look at SPY, because it has clear opening gaps, an important part of candlestick technique.
OEX and SPY charts are so similar, that at least right now, they're interchangable on a daily basis anyway. We are clearly in an intermediate term uptrend starting 10/28, and just completed a short term corrective downtrend. If the rally of the last 2 1/2 days fails, the short term downtrend turns into an intermediate term downtrend.
Back to the candlesticks. Yesterday's bullish candle was followed by a star for today on the daily chart, indicating indecision. A star is the beginning of some important reversal patterns, but by themselves they don't have much significance. In any case, reversal patterns need a trend to reverse to carry their full weight, so right now we are not in the high reliability zone for daily candlesticks.
Intraday candlesticks show a close of the morning gap with an inconclusive bullish piercing line at end of day. I'm not fond of intraday candlesticks that coincide with end of day, so there's not much help there.
Reading back over this, it's clear I'm not offering much in the way of help, period. We're just not at the right places to get a good read on the candlesticks.
Esteban
PS. Steve: I'm not bullish or bearish about the future, I just try to figure out where we are now. Based on where we are now for the intermediate term, I'd be long and holding. Hopefully I would have added to positions near the bottom of the 5 day correction. Of course I don't play the intermediate term, so you can probably guess my current position <g>. |
