Morning Report – February 13th, 2014
Late in the day there was profit taking in the NASDAQ Composite stocks, and the index formed a spinning top. Had it not been for some last minute buying, the candle would have been a doji. The spinning top is a candle of uncertainty, and it was no surprise that the Composite stalled after a reversal day followed by four strong days of extremely bullish candles. The index closed at 49.06% of its daily range on slightly heavier volume than the prior day.
The small bodied candle tells us there was little progress on heavier volume, so the effort vs. result was negative for the index, but there was strong buying in selective issues. Even though the advancing vs. declining issues were essentially flat, advancing volume was stronger than declining volume to produce a bullish Arms Index reading of .7242. Read Full Report