SP500, NASDAQ, DJI, RUSSELL
Today’s closure left the major indices pointing into the different directions. While some of them show some signs of the bullish continuation, the other ones are not quite there yet. Let’s explore them from the candles perspective.
DJI and SP500 look very bullish at this point. Though there are three days to go in this month and everything could happen in this market.
Russell tries to build a Spinning Top or some other bearish combo. I already mentioned in my previous update that unless the index makes about 100 points (+4.5%) in the remaining days, all other monthly closures would be viewed as bearish from the candles perspective.
Nasdaq has a very concerning combo in January and February. A red closure in March could be fatal for the next several months.
DJI and SP500 made a nice attempt to cancel the previous week candle, however, they stopped short from closing at a new high. If they did, it would be viewed as cancellation and continuation of the bullish trend.
Note that the green weekly candles were made on a very low volume which is very concerning from technical perspective.
Russell closed as a red candle within the body of the last green candle, making a Bearish Harami. The odds are bearish for now and a confirmation (or cancellation) is expected the next week.
Nasdaq is likely bearish. The Three Black Crows (circled) are giving a lot of bearish pressure recently.
Russell stopped 0.5 point from confirming the Piercing Line reversal.
SP500 and DJI technically confirmed a short term reversal, hinting that a new high should be printed on Monday.
Nasdaq continues to struggle. It did not have enough power to close above the last red candle and the odds remain bearish.
As you can see from the narrative, there is no clear direction for the market in the next week. While SP500 and DJI might make a new high, Nasdaq and Russell are pointing northbound.
I evaluated a few dozen of the most influential stocks in several sectors from the weekly candles perspective. I would say that most of them have the bearish odds of various degrees. While the price is up, the technical indicators are weak.
I don’t have a very strong opinion with regard to the market direction next week. I think that while it may give an impression of a continued bullish rally on Monday, on Tuesday and Wednesday (March 31) we will get a confirmation of the real intent for the following several months.