Thursday, January 15, 2009

Doji with Volume

Volume significantly picked up today on all of the indices, plus dojis formed on, at least, the DOW and the S&P500. Dojis accompanied by heavy volume tend to signal reversals, which, at 820 on the S&P or ~8000 on the DOW (both areas of previous resistance) makes sense. While a rise isn't guaranteed, this setup certainly increases the odds, as does anticipation of Obama's inauguration next Tuesday.


Charlie G. said...

I was ready for a rally today with the gap up and futures, and the doji, but then things tanked and by the time I thought it was time to go short - there was a sideways and the then choppy rally. Thought there would be more of a inauguration/MLK holiday bounce but it was a crisp one like yesterday. I have to check out some of your links, I noticed a couple I didn't see before you downsized! Have a good weekend.

Complacent Panda said...

See you stayed in teh green though! I didn't like how the market opened up. There really wasn't enough strength for that to hold...oh well, there's always tomorrow. Hope you enjoy the links. Minimalism has its merits.