What do Black Candles on a chart mean? Look at the chart below, and you tell me. Look at what happened after each black candle occurred. I can only find one time that a black candle occurred and the market continued in the same direction the next day. That was the first week of November. Notice that a black candle occurred after an up day, and the next day continued up too. Other then that, every black candle produced a move in the opposite direction the next day.
So, does that mean the top is finally in now? Maybe? Or maybe we just pull back for one day and then rally some more on Thursday and Friday. There is some heavy resistance at 113.00-113.50 spy, and that might be the finally high, before a nice sell off. Or, today could have been the high? I think it's all about the ADP numbers out tomorrow morning.
And since they already released some rumors that the numbers aren't good, in an attempt to lower the market expectations, I think we are nearing an end of the crack driven rally these bulls have been on. A turn is coming soon... if not tomorrow, then Thursday or Friday should produce a final top, and begin some selling. Nothing goes up forever... not even bulls with unlimited funds.
And here is a special song for the bulls (aka Johnny), entitled "Shooting Star" (Black Candle)...