I would like to point out where I believe, at least it is my opinion, where we are going in the near future. The indicators all look strong and continue to look bullish, but there are two things I really would like to point out. The first is the trend line that the SPY has been trading on for the last week or more. It now appears to be resting on the top of the line. We have had a lot of movement in the ETF but no real apparent movement in one strong direction. We do have this "resting" going on so we know that it has a sense of direction.
My real concern about investing in this stock this week is when i look at the candle stock pattens on both a daily and a weekly chart.When I do this I am getting selling signals from both charts. When we look up close at the daily chart we can notice that the last two days formed a BEARISH MEETING LINES PATTERN.
The Bearish Meeting Lines Pattern is a top reversal pattern suggesting a stall in uptrend. The first candlestick, a long white one, shows that the bullish momentum is going on. The next day opens higher with a gap but then the bears pull prices down to the prior day’s close. So the initial optimism on the second day’s opening now turns into concern of the longs.
The weekly chart gives us another bearish reversal pattern if we look at it also. When we look at it, we have the signs of a BEARISH DOJI STAR PATTERN.
Bulls control the market in a strong uptrend. The appearance of a Bearish (Doji) Star Pattern in such an uptrend shows that buyers are now losing the control and market is moving to a deadlock between buyers and sellers. This deadlock or balance between buyers and sellers may result because of a diminution in the buying force or an increase in the selling force. Whatever the reason is, the star tells us that the strength of uptrend is now dissipating and the market is increasingly vulnerable to a setback.My Personal AdviceBe prepared to do one of two things. Sell and take profits if today the stock confirms a possible reversal. This will happen because the SPY opens with a gap down or will close lower today with a black candlestick. If one is not interested in selling, protect your stock with a put option.