c505218304b50c59c3659f6dda43bae7-links-0–>The three indices S&P, Nasdaq, and Russell are not in unison – with the Nasdaq breaking towards new highs — even erasing the entire losses from last week, whereas the Russell and S&P are not even close.
The chart patterns are not clear. There should be some corrective pattern overnight into tomorrow with inclination towards immediate downside – but not sure by how much as it could quickly reverse and turn up – especially if Nasdaq leads the markets higher.
I lean towards the pink count but also recognize the blue count is also possible. It would be odd to have one index play out blue and the other pink, but anything is possible.
If we don’t drop overnight and consolidate in the 2138-2140 region instead, then we could head up towards 2150 tomorrow morning.
We should see a pull back after today’s rally, but whether it fuels another rally tomorrow or breaks down is unclear.
Nasdaq has erased all losses and is approaching new highs. This should pull back to below 4800 before bouncing back up. But the pattern going up doesn’t quite look right for continued upside, so will have to see how the pattern forms.
Russell has tested the 1200 region on 3 separate occasions and the bounce hasn’t been all that inspiring today.
In hindsight, probably should have executed the plan of buyng SPY puts at resistance level –just wasn’t sure due to straight up and straight down.
If you look at historical charts, prior big candles have been followed by consecutive green candles that wiped out all the losses — that’s what happened with Brexit and multiple other occasions. It did not happen this time.
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