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Candlestick Heaven
By admin | June 29, 2008
As this is being written, Index prices are at a multi-week low. Patterns in the Candlesticks indicate that prices should find a bottom very soon, to be followed by a modest upswing. The probability is that prices will retrace as much as 62% of their last major decline before topping out and reversing. The patterns do not provide 100% certainty; but they do provide a level of comfort that is unavailable by any other means. The Federal Reserve board meeting is expected to conclude tomorrow, to be followed immediately by a short-form compendium of its findings regarding the future course of interest rates. Many quarters expect that there will be no change; however, the countervailing forces of inflation on the one hand and a declining economy on the other may force the Fed’s hand rather than just sitting idly by and giving the impression that it is powerless and unable to decide. It is possible that the markets may respond to the Board’s action by scaling higher. The weight of the evidence as provided by the candlesticks is in favor of such an outcome. On the other hand, the small-cap indexes today continues doggedly on a lower path, which may tend to modify any pronounced move in prices to the upside.
Topics: Miscellaneous |