Candlestick Patterns

Guest Post: Election Year 2012: Two Landslides in the Making?

The stock market is precariously close to slipping into a landslide. If the economy and stock market both continue declining into late October, the presidential election could also turn into a landslide--against the incumbent. There is nothing particularly partisan about this possibility; people who vote tend to vote their pocketbooks, and a re-election campaign that boils down to "hey, it's not as bad as The Great Depression" is unlikely to inspire great loyalty in voters who are already culturally predisposed to tire quickly of presidents, wars and a tanking economy. If the economy and stock markets are both slip-sliding away, the opponent need only be "not the incumbent" to win. Presidents facing re-election in deteriorating economic conditions find their support in the critical non-partisan middle is a mile wide and an inch deep. A recessionary economy acts like a drought on that shallow lake of support, and when it dries up then the incumbent loses, and often loses big.

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The S&P 500, DJIA and NASDAQ Cash Indexes each registered bearish daily candlestick patterns on Thursday's close. Interestingly, the three primary US equity markets registered unique candlestick patterns in the form of a Shooting Star on the S&P 500, a Gravestone Doji on the DJIA and a Bearish Engulfing on the NASDAQ. Charts of the Dow, S&P 500, NASDAQ, VIX, BKX & SKF.

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6 Primary US Equity Markets

An updated snapshot that highlights how the six primary US equity indices have performed relative to each other since their March lows via a percent change chart in addition to a weekly, daily and hourly technical outlook