The turn-of-the-month effect and the half-of-the-month effect were confirmed in the second half of August. The confirmation came with the significant increase of the DJIA by 3.4% and 3.1% respectively.
At the same time, the index has come close to the 61.8% Fibonacci retracement level, a little below which a reversal Harami pattern has formed.
Despite the lack of an obvious usefulness of Harami in forecasting of price movements, if the model is confirmed today by closing at a level below 33800, the DJIA might go down to the level at 22250.
This content is for informational purposes only and is not intended to be investing advice.
