Sunday, June 27, 2010

mixed signals

Last week the Dow Jones went from the daily 50dma(blue line) to the weekly 50dma(green line). On the charts of the Dow and S&P, I am getting mixed signals on which direction the market will go this coming week. Here is the latest Dow chart.
1) on a 3 month chart, the Dow is making a right shoulder on a inverted head and shoulders pattern, on the weekly 50dma. This usually is a bullish pattern.
2) Last Thursday/Friday could be a bullish harami pattern on the weekly 50dma, but it was below the daily 20dma.
3) There are open gaps at 9900 and at 10300. Maybe both get filled this week?
4) Stochastic are still pointing down and have more room to go until there oversold.