Today’s closure of major US indices indicated a strong desire of reversal. Today’s bearish combos signal a very likely sell-off tomorrow.
On June 12, I posted a bearish alarm after the DJIA weekly closure (link below). Today’s bearish closure in unison hints that an early alarm is about to materialize.
NDX: Bearish Engulfing/Inside Out, the strongest of the bearish combos.
SPX: Dark Cloud Cover, stopped few pips from making Engulfing.
DJIA: a bearish continuation candle, no sign of reversal so far.
SmallCap: stopped few pips from confirming the Dark Cloud on June 9; also, daily PSAR flipped bearish.
Until the last 10 minutes the candles were on track to forming a very strong bearish closure. However, a mini-rally before the close made the candles one notch less bearish. It would probably leave some room for the bulls early tomorrow.
Anyway, the tables are set – let’s see what the FED has to say tomorrow.
I hope this is still a false alarm.
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Previous posts on the topic with charts: