Musings Over Candles

“Candles Exhaust Themselves to Give Light to Men” – from Japanese literature

Today I am opening my Daily Series of Musings over Candles. In this series I will analyze the daily candles that were formed by all 4 major indices and their futures – SP500, DJI, Nasdaq, and SmallCap. I will be interpreting the closure from the perspective of the Japanese Candlestick theory and will be trying to forecast the indices directions for the next day.

Today all cash indices (lower row on the chart) closed with very solid bullish continuation candles.
SmallCap produced a good Maribozu, making it two in a row. If tomorrow brings another similar candle, it would make the Three White Soldiers combo, increasing the odds for bulls.
SP500 also made a second Maribozu in row, however with a gap. The gap serves as a major resistance and if it is not closed tomorrow and another similar to today candle is formed, expect the bull trend to continue.
Nasdaq formed a normal continuation candle. Expect a continued trend tomorrow.
DJI made a second Maribozu with a gap and, very important, that today’s candle closed a tad above the previous Monday’s candle, effectively cancelling it. I view this as a harbinger for other indices.
All Futures completed normal bullish continuation candles.

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