Today the major indices formed bearish combos. The odds have shifted to the dark side. However, there are some details that hold me from going fully bearish.
NDX, SPX and DJI all require confirmation tomorrow. So far, their price is above the 8 EMA on the 2hr chart. Not even a major dent yet.
Smallcaps looks very bearish, however it is very close to the oversold level and I could not rule out a rally.
Weekly and Monthly:
The monthly and weekly candles are still in progress (below). So far, only the Smallcaps looks very bearish. But it was very bearish in the middle of previous week and then greatly recovered on Thu-Fri. If it repeats the same pattern this week, a strong rally could follow the next week.
Tomorrow and Friday will be critical days, let’s see how the week closes. So far no damage is done on the weekly.
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