“Doji Star” in S&P Futures
Despite the promise of endless liquidity from the Federal Reserve, and similarly aggressive plans from other Central Banks, the U.S. equity markets have struggled to push higher. While there have been some bearish warning signs (many noted here in my daily notes from the likes of Chris Kimble), last Friday the S&P futures provided what looks like a “doji star”; a common topping pattern.
Many of the other S&P proxies (like SPX and SPY) don’t show the pattern since their hours are different, but I thought it worth noting. Doji stars are typically short term indicators, so its presence isn’t cataclysmic by any means. A break of the S&P’s recent trend line – which we are fast approaching – would be even more telling.