INDEX UPDATE
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Just finished analyzing the Asian markets and they were on a roll last night again, which would have been good for today if our markets were opened today. Also the European markets were up nicely.
The short-term technicals for most of the ASIAN markets are now in the overbought region with a few CLASS 1 SELLS. For the candlestick watchers, I noticed that JAPAN, although it was up, closed about 1/2 below its highs, forming a WHITE BODY and an UPPER SHADDOW about equal in length to the body. I would categorize it as a SEMI-INVERTED HAMMER. A true HAMMER/INVERTED HAMMER would have the shaddow about 2-3 times the length of the body. The INVERTED HAMMER is a reversal signal, and in this case it is hinting that the JPN may reverse downwards. Keep in mind that it was not a full INVERTED HAMMER, so it definitely needs confirmation - just a slight hint.
As for some of the other markets like SPORE, MALAYSIA, HONG KONG, KOREA, I am suspecting we may be developing BEARISH HARAMI's, which is a big white day followed by a small black day, which signifies a downward reversal.
Keep in mind that the reversal upwards for the ASIAN markets have been strong and a reversal downwards may just be some profit taking and not significant.
Seeya |
