After today's trading, SPX formed a 3-day bearish revesal pattern known as the three black crows. This is a pretty ominous sign for further selling ahead. Volume has been running higher than yesterday.
From the intraday chart, the End-of-Day rally may be a potential C wave up in a flat pattern and has to potential to rally to around 1220 or higher. I would look to add shorts at that level. Question is will this flat continue to run longer and burn through the CTP's cycle low of 12/16?
One bullish sign may be that the short term stochastics is a little over sold compared to stochastics default and the longer period stochastics, which can indicate a bounce soon.
I would not anticipate a waterfall decline until all the stochastics are in overbought territory.
After today's trading, SPX formed a 3-day bearish revesal pattern known as the three black crows. This is a pretty ominous sign for further selling ahead. Volume has been running higher than yesterday.
ReplyDeleteFrom the intraday chart, the End-of-Day rally may be a potential C wave up in a flat pattern and has to potential to rally to around 1220 or higher. I would look to add shorts at that level. Question is will this flat continue to run longer and burn through the CTP's cycle low of 12/16?
One bullish sign may be that the short term stochastics is a little over sold compared to stochastics default and the longer period stochastics, which can indicate a bounce soon.
I would not anticipate a waterfall decline until all the stochastics are in overbought territory.