Bullish & Bearish Factors

Discussion in 'Trading' started by silenttrader, Dec 13, 2008.

  1. While last week, market showed bullish behavior in face of many bad news, few things are still raising red flags.

    1. Volume has been decreasing similar to last few bear rallies- see chart.

    2. Run to treasury and Yen is still on ( dollar is still going down).

    3. Market has been running into resistence and has been unable to break it, and now, threatening to break on the lower side of the wedge.

    4. Indicators (e.g. stochastic) is now in overbought territory.
  2. Also, there is lack of a catalyst, which will help sustain the rally (rather Madof news is concerning).

    For Candlestick chartists , is there a "hanging man " chart on friday? Another bearish sign.
  3. Hangin Man pattern happens at the top of a trend/swing, not at the bottom....what you have there is a bottoming tail....which if violated offer just as powerful a pattern as they normally would...just in the opposite direction
  4. That is true if Paulson does not open the door to Auto makers tomorrow.