dianadabinett

I was asked by a client the other day whether I thought Index prices would rise or fall yesterday. My answer was, I think they will fall. He asked me why I thought so, and I told him that the Japanese Candlesticks "evening star" formation was a very good indicator of bearish price action over the next few days.  As it happened, the prediction was correct, for prices did in fact retreat considerably yesterday. Further, the pattern was strong enough for me to believe that the decline in prices is far from over. We must remember that we are in an overall bear market, and the advance in prices that we have seen over the past few weeks has been nothing but a bullish rally within the context of a larger bear market.  So far this morning, prices are continuing to fall; and my belief is that a major decline is just now beginning.  Time will tell.