Black Candlesticks in Indices Signal Weakness Looms
Declan Fallon | Feb 28, 2023 15:39
I wouldn't say I like seeing black candlesticks as they reflect a failure of opening strength, and today was one of those days. Black candlesticks are more of a problem at the end of the rally than at the start, but if we see a gap down tomorrow, there won't be much support to lean on.
The S&P 500 and Nasdaq might yet see another test of the 200-day MA tomorrow. However, if there is a close above today's high, the bearishness of the black candlesticks is negated.
Today's candlestick for the Russell 2000 finished right on support. It's not great, but there is at least a support level to work with. Technicals haven't changed.
So, markets started positively with a gap higher, but by the close of business, there was no building on opening strength.
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