Looking at the SPX we see today formed a doji candle stick pattern. It was a day of indecision but with a larger upper shadow, longer then the lower. I will give a slight victory to the Da Bears.
So with yesterday's strong up day, followed by today's Doji it gives us another candlestick pattern.
The Doji Star! This is a bearish candlestick pattern.
If tomorrow we get a down day tomorrow but do not gap down at the open, we could see this candlestick forming which is Evening Star Candle stick pattern. Which we move down to the middle of the large bullish candle.
Or if we gap down we will have the Abandoned Baby candlestick pattern. It be so much better if this was called the Dumpster Baby candlestick pattern. But back to the pattern.
The bottom line is all the patterns are bearish and signal a reversal could be underway, which still goes with my theory yesterday that tomorrow should be a down day. It will be important to note where we close tomorrow in Tuesday's large up candle. Taking out the Bond Holders of the banks can't be good for the market either. So the market might be setting up for a down day.
For more information on the candlestick patterns go to StockCharts.com
UPDATE!:
Check out the last time we had the two formations mentioned. Very NICE!
Position update: Sold ACC this morning, this was profit taking on a good trade. Short BBY ahead of retail sales(another example of a doji candlestick)
