Do We Have More Upside in the Bounce?
On February 5th, the markets put in a Dragonfly Doji, a one day bullish candlestick
indicating the markets
were looking to bounce.
Friday the 12th, the markets put in another bullish one day candlestick, a
Hammer. This hinted to more upside and that's what we got the following week.
Here we are 2 weeks later and the markets have put in another Hammer candlestick.
Today's Hammer would indicate further upside in the bounce started on February
5th. If so, the next resistance level is about 10,500 on the DOW. That's where
we have a confluence of resistance (The daily upper Bollinger Band, rising
trend line off minor peaks, and prior lateral peaks).
If the market is going to continue the "Big Correction" like many Elliot Wave
analysts have labeled, the markets should roll over soon, now or maybe after
testing 10,500 and then failing.
J.D. Rosendahl
http://roseysoutlook.blogspot.com
J.D. Rosendahl is not a registered advisor and does not
give investment advice. His comments are an expression of opinion only and
should not be construed in any manner whatsoever as recommendations to buy
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at any time. While he believes his statements to be true, they always depend
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