I was right yesterday when signaled a possible beginning of a rally today. The odds have shifted to the bright side and a rally is expected to continue tomorrow. Let’s evaluate the candlespeak and the waves perspectives.
SPX fully engulfed the hammer and closed above 8 EMA. The trend is healthy and higher prices are expected tomorrow.
NDX is not entirely out of the woods, but it found strong support on 20 EMA and closed above 8 EMA. A move upwards tomorrow has much higher probability than a move down. Remember that the weekly odds are still bullish and would support a bullish closure of the week.
DJIA built three Harami candles in a row, each within the range of the preceding red candle. This action likely cemented the bottom, but DJIA still requires a confirmation. A daily closure above $35930 would be it.
I shared the charts with everyone earlier today and think that $SPX is on track for a little higher from there.
Based on recent waves, I have updated the SPX and DJIA short/mid term forecasts with targets and timing.
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