Black Candlesticks in Indices Signal Weakness Looms

  • Stock Market Analysis

I wouldn't say I like seeing black candlesticks as they reflect a failure of opening strength, and today was one of those days. Black candlesticks are more of a problem at the end of the rally than at the start, but if we see a gap down tomorrow, there won't be much support to lean on.

S&P 500 Daily Chart

The S&P 500 and Nasdaq might yet see another test of the 200-day MA tomorrow. However, if there is a close above today's high, the bearishness of the black candlesticks is negated.

Nasdaq Daily Chart

Today's candlestick for the Russell 2000 finished right on support. It's not great, but there is at least a support level to work with. Technicals haven't changed.

Russell 2000 Daily Chart

So, markets started positively with a gap higher, but by the close of business, there was no building on opening strength.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles