A neutral or cautious posture might be the best bet for next week until…
After a string of powerful up days after breaking above the downtrend line that we have discussed the past few weeks, last Friday’s action created a bar known as a “long-legged Doji”.
In general, Doji type bars are recognized to represent indecision among traders.
The fact that last Friday’s Doji came right at the line of overhead resistance AND had legs that included the entirety of Thursday’s bar is especially notable.
It’s possible a pullback is likely, or perhaps this Doji will be a blip on the market’s path to new highs.
We’ll certainly know better what the path of least resistance is after a new bar closes either above or below the extremes of Friday’s Doji.