The SPY weekly bar now shows a Doji bar. In other words, last week price action was a [PAUSE] and the direction was NEUTRAL.
Although we have a higher high and higher low; a Doji at this point is actually not a good sign for the bull since Doji can sometimes represent a “topping” of the chart; a point suspended in mid-air before turning the corner. Doji bar generally meant that neither the bull or the bear won the battle for the week. However, a long-tail (from top) meant the bull gave back a lot of gain before settling back to the week open price.
From here, I’ll watch how coming price action move relative to last week closing price. If price action starts the week trading below Friday closing price, it is considered bearish. And if the price action takes out last week low, even more bearish. Nevertheless, if it trades above Friday closing price with a low that does not drop below last week low, the bull may still be in charge.
Based on Friday after hour price action and current Sunday night price action, it sure looks bearish to me.
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