Since last weeks Doji failure at 50.25 area we have been on a steady decline. We are no longer making higher peaks and troughs (See Charles Dow) although most dip buyers would only exit with a print below 32.48. If this happens we have very little until way down at the $25 area. This does seem unlikely but so did 32 a few months back. We are not keen sellers down at these levels but there is no argument against the fact that the Bulls have been less than convincing on any bounce.
Indicators in play.
Charles Dow defined the basic principles of a Bear market as one that is producing lower peaks and troughs on each swing. The opposite applies in a Bull market. A Doji is formed when the market opens and closes at or very close to the same price. These can occur at any point on a chart but are only of any significance after a prolonged rally or sell off. These are not the strongest reversal signals but do show a leveling out in the balance of power between the buyers and sellers.
Summary
Its all looking a bit shaky again although there is still a chance for a double bottom to be created. However, we will sit on the fence for the moment and see how this pans out. The pressure is in no doubt but we are not keen sellers at these levels.
