Market’s Short Term Recovery Maybe Over
Posted on: March 17, 2009 - Email Article - Printable Version
The market’s temporary recovery may be just “temporary.” With the market closing positive for four consecutive days in a row it is not surprising that the market had a slightly down day. However, today was much more significant, not only do we have the possible start of a bearish candle stick reversal pattern, which would be confirmed with one more day of bearish trading, but more importantly we have this market weakness right as we near the 50% retracement mark from January and February’s highs as you can see in the first chart below. As you can observe from the second chart below, this pattern happened in the past and was followed by the market falling to its current bottom of around 666. I would consider these chart patterns very significant and expect the market to follow through to the downside and may even make a new low.
-Justin DiPietro
Disclaimer: May take bearish position using SPY option contracts
The Following Stocks Were Mentioned In This Article: SPY
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