Wednesday, June 10, 2009

Looking for "Exception": Dow Jones 5 Day

Dow Jones Industrial Average ended today in total indecision again, though with slight negative bias. It makes 4 consecutive trading days of "doji" (or very close to one) candlestick for the index. I don't remember seeing anything like this before, and I don't know whether it is statistically probable. (I know it's possible, because it clearly happened, but how probable is it?)

In the past 5 trading days, actually, the index stayed within extremely narrow range, with daily fluctuation of between 0.1% and 0.27%. For that matter, the index has been basically flat since June 1. Today's close was 0.21% above June 1's close.

If you look at the chart, you may notice that other technical indicators are flat-lining. Volume remain constant and relatively low, RSI is literally flat-lining, money flow is hugging the zero-line.

Now... what...?? Any fresh ideas?

Instead of up or down, how about simply flat-lining the market indefinitely? That should be possible with those super-fast, super-numerous computer tradings by the usual suspects.

(Why bother even opening the market and trading every day? I guess for the sake of appearance...)

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