Today the major indices closed in unison. SP500, Nasdaq and DJI have produced various bearish combos on the daily chart. I view this closure as a first step in confirming the alert that I issued on Friday on the weekly candles for all three indices. The odds of confirming the first Alert on the weekly time frame has increased.
In case you are wondering about Russell, in short, it cooperates.
Alert on Friday, April 24
I like it when three major indices finish the week in unison. This week SP500, Nasdaq and DJI formed a Bearish Harami on the weekly charts. The Bearish Harami is considered a third most powerful reversal combo.
The Bearish Harami requires a confirmation and does not rule out a possible higher high next week. It means that the price could immediately go down on Monday, but also could hit a higher high at the beginning of the week before reversing down and closing below the previous week low.
This alert has 65-70% probability.
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