The Dow Industrials and the other major Indexes were up slightly today, including the NASDAQ Composite.  The Industrials appear to be faltering.  The Candlestick pattern in the NASDAQ causes us to stop and consider its implications.

This particular pattern is a “High-Wave Doji,” which we recognize as a Reversal pattern.  The Doji is characterized by an Opening price and a Closing price which are the same, or nearly so.  Today, they were only 53 hundredths of a point apart – so the pattern clearly qualifies as a real Doji.

We will be looking for a lower Close tomorrow.  If we do in fact see a lower Close tomorrow, we would consider that to be confirmation of the Doji’s bearish warning, and we can reasonably expect to see lower prices thereafter.

William Kurtz

November 11, 2009

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