It's been a quiet week for the broader equity market as the S&P has done next to nothing. In the chart below, you can see that the last four bars in the chart don't look like bars at all, but rather plus signs, or doji's (green circle). I've talked about these before as they indicate a market that is directionless and perhaps at a point of capitulation.
Notice that in recent weeks the upward momentum from this latest rally has slowed. The doji's appear when a series of events take place: First, the market opens very near to the prior day's close. There are no gaps up or down as traders are content to see prices open at yesterday's closing levels. The flat open is followed by both buyers and sellers fighting to move the market, but to no avail. During the trading session buyers will drive the index higher, but this ... Log in or subscribe to continue reading.