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Registered User
Joined: 2/18/2005
Posts: 8
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I'm looking at a 5-month daily chart of the Qs (QQQQ). In the top section I've got a candlestick price chart overlain with moneystream. Note the divergence between price and moneystream since mid-May. In the middle section I've got balance-of-power: solid red for the last 3 weeks.
Sure looks ominous to me. Also, could that be a doji evening star forming on Friday, 6/15? We'll have to wait until Monday to find out I guess.
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Registered User
Joined: 2/8/2006
Posts: 73
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Yes, farch that is a doji star. Most likely the Qs will be down on Monday according to this candle. If it is a down day the candle could merge into an abandoned baby.
Aslan007
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Registered User
Joined: 2/18/2005
Posts: 8
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If the Qs gap lower on opening on Monday and remain lower, then it could become an evening doji star or an abandoned baby as Asian007 says. If that happens, a significant reversal could be in the offing, especially if Monday is a long down day. It should be interesting.
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Registered User
Joined: 4/18/2005
Posts: 4,090
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Well spotted. I was curious about this formation myself and was about to post a remark.
However could it not be some sort of running or exaustion gap... Large rally in China last night seems to have futures higher this morning. Also Becareful how much stock you put into divergences... they can go on for months, years.
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Registered User
Joined: 2/18/2005
Posts: 8
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I checked John Murphy's book. I guess it could be a runaway or an exhaustion gap. Time will tell. If it's an exhaustion gap, the top may be near.
The Qs formed a tweezer top today: Highs of 6/15 and 6/18 equal. Also closed at a 6-year high. Look out below? I don't know. Qs down in after-hour trading.
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