Ignition of the March 2009 Rally Was Foretold by Candlestick Stock Index Reversal Patterns [stocksmarketarticles]

Ignition of the March 2009 Rally Was Foretold by Candlestick Stock Index Reversal Patterns [stocksmarketarticles]

3/9/2009 - CNBC Stock Market Closing Bell (The Bear Market Bottom). Dow Jones Industrial Average closes at it's lowest level since April 1997. S&P 500 closes at it's lowest level since September 1996. Nasdaq Composite closes at it's lowest level since October 2002. March 9th, 2009 is the US stock markets official bear market bottom.

stocksmarketarticles.blogspot.com March 9th 2009 CNBC Stock Market Closing Bell (The Bear Market Bottom)

Extreme bearishness may actually be a net positive for the stock market. When sentiment bottoms, it generally also marks a bottom in stocks. For example, the index bottomed in the week ended March 5, 2009, as more than 70 percent of investors were ... Investors Turn Bearish: A Sign of a Market Bottom?

The ignition was slow in coming, but all during the weeks of February and early in March 2009 our broad complement of technical indicators was warding us that pressure was building toward a hard bottom in prices, to be followed by a significant upside reversal of trend. We were watching for Candlestick stock index reversal patterns to emerge which would tend to confirm the evidence which was being thrown off by the indicators. By this time, many investors had given up during the long downtrend and had disposed of their stocks.

March 5 was a strong Down day. The Dow Industrial Average fell 240 points, leaving a large black candle in its trail. It seemed, on the surface, that the downtrend was bent on continuing. However, on March 6 all traffic came to a halt at the intersection, so to speak, when Candlestick reversal warning signals appeared across the Indexes.

Some of them were Spinning Tops; one or more were Doji, in which the opening price and the closing price is the same, or nearly so. The candlestick stock price action of a major company had given a reversal signal two days before that, but we did not spot it at the time.

The across-the-board reversal warning signals of March 6 were just the confirmation of the persistent warnings of the standard Indicators; whereupon we were on the active lookout for a reversal to occur very soon. It came only two trading days later, when prices across all Indexes took off in a spirited advance. The Dow Industrial rose 350 points, and the Great Rally of 2009 had begun.

The final pieces of the early-warning puzzle were the March 6 reversal patterns in the candlestick stock indexes.

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