Today’s closure of cash indices was a stick save, but, it looks like the stick save was not sufficient to save the bullish trend, at least from candles perspective. Let’s have a look.
Note that the futures are still in progress for the next 3 hours, so I will focus on cash indices only (bottom row of the chart).
1. SPX cash closed with an IDEAL Bearish Harami Cross: open=close and today’s trading range is entirely within Friday’s open-close range. One very rarely gets this type of candle and combo of such precision. We will know tomorrow whether this sign is ominous. Actually, I could stop right here on this update. But let’s have a holistic view.
2. SmallCap produced a Bearish Harami. It is not as strong as the one in SPX, but should obviously be accounted for.
3. DJ closed with an almost perfect Harami though it has a chance to make an Engulfing.
4. NDX remains the only one that looks up with higher bullish odds. It looks like no cloud on the horizon. Would it save everything else?
Note that all Harami require confirmation. They would be considered confirmed if a candle (ideally next day) closes below the previous two lows. A higher high would not invalidate the combo if tomorrow closes to confirm the Harami. It would be a very interesting day tomorrow. The ball is in the bears’ court.