A Quintuple Outside-Down Day by Two Measurements: A Rare Bird
Thursday, May 7, 2009 | William Kurtz Is this Spam?Evening of May 7, 2009
There was a proliferation of bearish signals throughout the major Indexes today, in both the Daily and in the Weekly charts; but we’d like to focus on only one Index in this report.
We have said for several days now that we thought that the NASDAQ Composite and NASDAQ 100 are the closest of all of the major Indexes to topping and reversing. Whereas all of the major Indexes (except the Dow Utilities) which we follow declined today, the action in the NASDAQs, especially in the Composite, is the most eye-catching and the most meaningful.
Specifically, the NASDAQ Composite executed a quintuple outside-down day today, by both “Western” and “Japanese Candlestick” measurement.
In “Western” terminology, the total range of today’s price action in the NASDAQ Composite engulfed the total range of the price action which occurred during each of the preceding five days.
In “Japanese Candlestick” language, the “real body” of today’s price action bearishly engulfed the “real bodies” of the price action which occurred during each of the preceding five days.
It isn’t very often that we see a quintuple outside day, by either style of measurement. To see a quintuple outside day in both styles on the same day must be exceedingly rare.
We think that today’s patterns, and especially today’s pattern in the NASDAQ Composite, is a bearish signal of considerable importance.
William Kurtz http://www.candelaabra.com
