Two White Candles - Three White Soldiers Next?

DJIA - 38.27, -0.31% SP500 + 0.11, +0.01% NASDAQ Comp. + 20.28, +0.83% Russell 2000 + 7.13, +0.97% Oil closed at $134.61 down 25 cents Oil traded as high as 138.69 on Monday before selling off and closing down 25 cents for the day. The broad indices started the day moving down from Friday’s close and found support around the S1 level of Friday’s and rebounded to close above their lows. The DJIA formed a higher low near the S1 support of Friday’s large white candle. Monday was a higher low and higher high even though the DJIA closed down for the day. The DJIA continues trading below its 20, 30, 50 and 200 DMA. The S&P also found support above the S1 support level of Friday’s large white candle and formed a higher low and higher high. Today’s candle was a small white spinning top. The S&P is still well below its 20, 30, 50 and 200 DMA. The Nasdaq opened lower in the support area of its 50 DMA and found buyers early in Monday’s trading session. The index closed near its highs of the day, making a higher low and higher high while forming a second large white candle. If Tuesday forms a large white candle, this will be a three white soldiers candle pattern. The Nasdaq which closed above its 50 DMA on Friday also closed right at its 20 and 30 DMA. Monday was the second consecutive day the index closed above the May 23 double top support low and the January horizontal resistance. The Nasdaq is below its 200 DMA at 2,510. Watch trading closely to see if it continues to trade above the important 2,425 – 2,430 support area. The Russell (RUT) opened just slightly lower than Friday’s close and found buyers early also making a higher low and higher high while forming a second large white candle. Like the Nasdaq a large white candle tomorrow would form a three white soldiers pattern. The RUT broke through and closed above its 30 and 20 DMA on Monday. The RUT’s 200 DMA is 744 just four points higher than Monday’s close. Watch for a potential breakout of this resistance area. AAPL formed a bullish engulfing pattern on Monday confirming Friday’s hammer pattern. Today’s close was near the R1 resistance area of Thursday’s large black candle and above the May 23 double top support low. FSLR made a higher low and higher high on Monday as it closed above its 50 DMA. FSLR closed above Friday’s close and below Monday’s open and intra-day high, which formed a small black spinning top. This is likely a result of oil prices pulling back today. If Tuesday’s price were to move lower FSLR could form an evening star pattern. If the price moves higher it obviously won’t form an evening star. BIDU closed above the high of its low day on Thursday June 12 when it bounced off its 200 DMA. Monday’s price closed near its 20 and 50 DMA. This is a support bounce chart with BIDU currently below but very near to its 20, 50 and 30 DMA. MA moved higher on Monday after closing above the high of the low day on Friday. MA is in a support bounce move closing today above both its 20 and 30 DMA. DRYS formed a second small spinning top in a row on Monday. Trading below its 20, 30, 50 and 200 DMA appears to be forming a bear flag pattern. Moving Up: STRA, BIDU, RIMM, CF, DECK, AAPL, POT, GS, SOHU, FSLR, MEE, AMZN, IPI, AGU, DRYS, MA, MTL, FWLT, V, JASO, CELG, LEH, MS, NUE, BRCM, MER, GRMN Moving Down: X, MON, ESRX Intermediate Term Market Trend: Down (DJIA, S&P) Short Term Market Trend: Up