Candles Speak – Daily

Today was a very mixed closure with lots of underlying hints. Let me try to uncover them:
(cash – lower row, futures – upper row)
1. SmallCap
The cash index closed with the strongest bullish Maribozu. However, yesterday produced a Gravestone Doji. This little fella does not appear just for fun. I would be very-very cautious in the upcoming days.
2. ES/SPX
SPX produced a healthy Bullish Inside Out, however, it closed just few pips below the upper wick of yesterdays candle. If it did, it would make a complete Inside Out with much higher odds. I don’t like “almost there” situations with candles, they are the most dangerous. Note that PSAR for cash and futures are in the different camps – not a very healthy condition and should be resolved soon. The question is which way.
3. NDX/NQ
The most concerning one. As I noted recently, the price is still within that huge red candle for both cash and futures; PSAR is still on the dark side. The last three days had a healthy trading range, but formed the candles with very tiny bodies, meaning that the fight is ongoing and could switch the trend in any direction. For the bulls to establish a trend, a closure at a new high is required. Until it happens, the odds are bearish.
4. DJI cash “almost” completed the Inside Out and the futures were prevented from completing Engulfing in the last minutes (“almost there”). I view the odds as slightly bullish that require confirmation by closing at a new high.
In Summary: I am rather neutral, waiting for the confirmations at the new highs for multiple indices. It looks like all eyes are on NDX/NQ.

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