Thursday, May 27, 2010

Market outlook May 27th: Rally in the face of a Bear market

Yesterday's close had all the makings of a Hammer Candlestick pattern, as the market closed very close to the bottom of the day's trading. This set up the following comment from on the S&P 500 Candlestick pattern for the past 2 days of market action:

The last two candlesticks formed a Bearish Dark Cloud Cover Pattern. This is a bearish reversal pattern that marks a potential change in trend. Though it is highly reliable confirmation is still recommended.

The Futures are up significantly and we are about to pop on the latest good news on the Initial Claims number, which was down 14,000 to 460,000. Also out this morning was initial GDP for Q1 which is estimated at 3.0%, down from an earlier estimate of 3.2%. Dow and S&P 500 Futures dropped a bit but the way seems clear for a rally today.

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