We had a very volatile session today which resulted in outside days being made on all of the major indices. The Nasdaq had its first significant down day in two weeks. It dropped back under 2200 after spending two short days above that level. The candlestick pattern it just completed is close to an evening star except that this pattern took 4 days instead of three. Nonetheless the signal that it sends is the same — the sellers have taken control from the bulls for the time being.
The next test for it will be the trading range from most of last week, which should be support. But don’t forget that options expiration is this week so things may get extra fun over the next few days.
