Today major indices closed strangely. The weekly – bearish. The daily – bullish. Have not seen this for a while. Let’s have look into the details.
The upper row – daily candles, the bottom row – weekly.
The weekly formed a bearish continuation candle. The rather long lower wick could mean a bullish beginning of the next week, but the candle itself is not bullish and indicators support this idea.
The daily formed a Bullish Engulfing. We should see at least one more day of higher prices. But I would be very interested in the Monday/Tuesday candles, whether they can keep the rally going.
The weekly is Bearish Harami, however it is somewhat weak and requires a confirmation.
The daily almost confirmed the reversal, failing to advance just a few points.
A very interesting combo of weekly/daily. I’m sitting on the sidelines next week.
The weekly is a Hanging Man that is also a Harami to the large green candle. The weekly odds are bearish.
From the perspective of the daily candles, everything looks very bullish.
The next week would be a great battle of the weekly and daily odds.
I bet on the weekly ones, the win in most cases.
The weekly formed an Inside Down that would require a confirmation next week.
The daily was an attempt for reversal. The odds are almost 50/50 on daily. The beginning of the week would be crucial.
The Market Pulse is slightly bearish. There is no clear indication of the direction.
However, if we look into the minor waves of the 2-day rally, NDX, DJI and SPX all had the corrective waves off the bottom. This likely means that another deeper corrective wave is coming. This is the SPX counts on a 15min chart.
On a separate note, yesterday I charted the Australian ASX200 index and its closure this week was extremely bearish. I am wondering whether it was a canary in a coal mine.
Follow the blog in Twitter @InvestingAngles or by email subscription.
As tweets are often buried among the other tweets on the topic and one is looking for regular updates, I recommend that you to sign to the email updates in the blog – every single post will be automatically sent to your inbox.