Today the major indices provided one more alert on top of the previous two and have increased the bearish odds from the candlestick perspective.
SP500: Bearish Engulfing of the two previous candles that were bearish by themselves.
Odds: Bearish, ~80%
NDX: Confirmed the Dark Cloud Cover of yesterday.
Odds: Bearish, ~75%
DJI: A bearish continuation combo.
Odds: Bearish, >70%
I am expecting a move down tomorrow. There is always a chance of rally, however the odds favor the bears now (see above).
From the initial 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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