Not a good finish with a Gravestone Doji following a really good start to the day. How much of the selldown after lunch was due to hitting resistance, profit taking or the traders doing some typical Friday divesting is hard to say but it clearly ran out of puff.
The pattern normally signals a reversal and I guess we will find out on Monday or maybe Tuesday whether the move still has legs. As I ventured last night, a big move like yesterday will often be followed by a low range day or two. It wasn't a low range day but it finished with a Doji which is essentially the same outcome.
It could be that the SP has started to retrace already, not out of the question after such a big move yesterday. The bots IMO did play some part in the afternoon slowdown taking windfall profits out of the move and helping to stop the momentum at around 63 cents. There had to be a fair amount of retail hot money in the move as well and it wouldn't have taken much to turn the tide and there was some selling right into the close.
The SP looks like it might retest the 200 day MA ( 58 cents) as I suggested last night and I would like to see it hold around the current level at least. Still, overall a great week and hopefully the beginning of a sustainable move but we might have to wait a day or two for some clarity.
Daily COB June 23rd
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