Candles Speak – Major Indices Daily

Today’s closure was quite a storm. All niceties for bullish advance were undone in the last 30 minutes. Note that there are still 3 hours to go until the closing prints are known in futures.
Here is current interpretation:
1. SmallCap
Both cash and futures seem to be working on Rising Three Methods and it looks like a sharp drop is due tomorrow.
2. SP500
Both cash and futures have developed Spinning Tops that would require a confirmation tomorrow. Note that the cash index has formed an Island.
3. Nasdaq
A Spinning Top and Island in cash. A combo of Hanging Man followed by Inverted Hammer (3 hours to go). Wow!
4. DJI
The cash one continues to work on a huge Island after three still unclosed gaps. The futures is threading carefully by not closing above 30000, the vaccine Monday.

Summary: The bearish combos are stronger and easier to complete than produce the bullish continuation ones. Odds are bearish. The bear is almost in.

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