Today’s damage is mid to long term. The weekly candles formed the strong bearish combos. At least one more week of selling is coming. The weekly damage normally requires weeks to recover. Let’s have a look at the weekly and monthly (incomplete) candles to evaluate the magnitude.
Weekly Candles (lower row):
– SmallCap – a very strong Bearish Engulfing;
– SPX – a very strong Bearish Engulfing;
– NDX – a Spinning Top, requires confirmation;
– DJI – a confirmation of Bearish Engulfing of last week.
Monthly Candles (upper row, 8 days before the closing print):
– SmallCap – possible Bearish Engulfing of a Hanging Man;
– SPX – possible Bearish Engulfing of a Hanging Man;
– NDX – possible confirmation of a Hanging Man;
– DJI – possible Bearish Engulfing of a Spinning Top.
The candles have been alerting for some time, refer to the Alerts below. NDX has been forming the reversal monthly candles since March. It was for a reason.
If you think that the weekly Bearish Engulfing is an empty sound, please read this post with statistics: https://investingangles.com/2021/06/18/xauusd-gold-gloomy-long-term-perspective-18-06-2021-gold-preciousmetals-investing-charts-gdx-gld-elliottwave/
I am going to share an extensive analysis on NDX later this weekend.
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June 16 Alert:
June 15 Alert: