You’re right. The difference in a dragonfly doji and a hanging man is slim, but technically you’re correct. I follow the Dow chart more than the S&P (personal preference and custom) and it formed a doji at resistance. Both signals are similar and often precede a short-term reversal.

True, I don’t follow the Put/Call ratio as closely as I follow the VIX but it also made a new low on the year which confirms the complacency or potential optimism in the marketplace.

I thought about mentioning the divergences setting up but I didn’t want to come across as too bearish

To be honest, I’m puzzled whey the market hasn’t tested lower levels yet but true energy and materials and select commodities have been strong which prop up the indexes… now especially because the 2 of the 30 stocks in the Dow are oil stocks (Chevron and Exxon Mobil). Interesting.

I’ll look at the A/D Line in the next post.

Excellent observations.

True, the S&P formed a hanging man at resistance – that would suggest indecision at best and a likely reversal at least to test some lower price levels before potentially heading higher. There’s a lot of empty space beneath the price which I could see easily filling. Will be on the defensive next week.

But then there’s so many divergence whether be daily MACD Histogram or RSI… like you said, 20ma is so strong and the trend channel support line is very strong, everytime it hits it, it just bounce right away! So we shall see… market internal is also unhealthy… rally are all prop up by energy and material… look at financial, limp.. can’t even get up while $SPX rallyed past few days… Yet with all these divergence (A/D line diverging too), market simply won’t go down… $VIX doesn’t do much if we are indeed rising and forming a new bull market… look at last bull market $VIX stay pretty much around 10 or below for all eternity…

Weekly Chart looks good.