Morning Report – March 17th, 2014
The market has taken on a bearish tone, but as I went through my analysis process this morning, I did not see a strong case for the Bears. Of course, I have the advantage of looking at the stock futures when doing my analysis, but futures are fickle, and strength can evaporators quickly as it appeared.
I try to look at the markets objectively based upon what happened over the past few days. Thursday was decidedly negative based upon both price and volume, but on Friday the selling subsided and a small candle formed. It was almost an inverted hammer which is a bullish candle. An inverted hammer means buyers stepped in and tried to take the market higher, but by the end of the day they failed and the bears were in control. The small bodied candle tells us that there was a lot of indecision, and neither side was really in control. If there had been strong selling across the board, volume would’ve been heavier than on prior days. Read Full Report