Click on Chart to EnlargeThis is certainly a pivotal and emotional time in the trading world. There is lots of frustration and even anger out there regarding the market and retail traders' emotions from both bulls and bears.
Bulls are mad that lots of people have been saying the market is likely to fall and keeping them out of this explosive rebound. Bears just cursing the rally and its descendants on every up tick. I can vouch for the frustration as well this week. "Sometimes you are the windshield, and sometimes you are the bug. And this was a bug kind of week for me" was how someone phrased it. I was definitely 100% long on bug genes this week, with full margin to boot. lol.
With short-term trading you have to be flexible and largely distance yourself from any belief or hope about the market. So while from a charting and pattern perspective I still favor this area as a topping/reversal level for the intermediate term until proven otherwise, a breakout and hold for several days above the June highs will be good reason to continue treating the intermediate trend as up until proven otherwise.
Here are a few links to other posts I've made highlighting some doji candlesticks for those interested.
http://stockmarketalchemy.blogspot.com/2009/03/doji-candlestick-in-major-indexes.html
http://stockmarketalchemy.blogspot.com/2008/09/nem-and-many-other-gold-stocks-reversal.html
http://stockmarketalchemy.blogspot.com/2009/06/shooting-stars-and-dia-northern-doji.html
http://stockmarketalchemy.blogspot.com/2009/04/doji-candlestick-friday-in-dow-and.html
Have a good weekend!
