This week’s doji on the S&P 500 signals hesitancy. Reversal below the mid-point of the previous week’s candle would complete a bearish doji star reversal. Breach of support at 2750 would further strengthen the bear signal, warning of a test of 2400.
Small caps are a lot weaker, with the Russell 2000 (iShares ETF) testing support at 145. Breach would warn of a test of primary support.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.