Fridays Significance:

In a bear market everyone becomes a technician. Traders become hyper sensitive to PRICE action. I have been consistent in stating there is no reason whatsoever to catch a falling knife, until there is a catalyst. A stock in free fall could drop 40, 50, 60% or more, and the way to step in on a solid risk/reward basis for me is using the candles. As seen on the Nasdaq chart below, one can see the importance on how they called near term tops and bottoms. This week thus far looks like a bullish engulfing candle, depending on Fridays CLOSE. It looks likely, as it would have to finish about 350 handles lower for the pattern to be negated, although anything is possible. Last week I did notice the Nasdaq was starting to make it somewhat of a habit to CLOSE the daily session in the upper half of the range, of course with the exception of Friday, which was gearing up to be a strong move, until a late fade which I think was more quad witching than fearful selling. This week move higher of 13% so far is very impressive, and I still get messages all the time that they think the move is over. What if it’s just getting started? 

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