Market is definitely taking a slow approach to a possible reversal:

  1. Yesterday:
    NASDAQ made the third consecutive gap;
    Russell made a bearish Meeting Line combo.
  2. Today:
    SP500, DJI and Nasdaq produced a Bearish Harami combo; DJI has the worst variant;
    Russell made the first step towards confirming the Meeting Line.

While the Harami is not the strongest of the reversal patterns, it shifts the odds to the dark side and still requires a confirmation in the next few days.

The market is in crossroads now – some indicators support the rally, some already shifted to the bearish side. The major concern right now is that ALL major indices made various bearish combinations in unison. Of course, there is always a chance of canceling all combinations and continuing with the rally, but the theory says it’s less than 30% now.
Let’s see how the market plays overnight.

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