When in doubts – listen to what candles say! They issued a strong reversal signal yesterday that perfectly confirmed today.
From yesterday’s analysis: “From the candles perspective the most typical action tomorrow would be an opening lower than they closed today and a strong move upwards during the day. If this happens, the pullback would be over.” Aren’t the candles great?
Let’s evaluate the perspectives of candles and waves for the nearest future.
Adding IWM today to the pool.
SPY and DIA made the Tower Bottom formations. QQQ confirmed the Morning Star of yesterday and IWM made a bullish Engulfing.
These are among the most bullish reversal candles/combos. While we could see some horizontal moves in the next few days, the direction upwards is set with high probability.
SP500 continues to move as forecasted. The green path is primary.
From the weekly analysis on the weekend: “There is a possibility of one more leg down in wave ii early next week, however, no deeper than $4625-35 before resuming the rally. In case of a deeper pullback, the red count might become the primary.”
If you would like to learn about the next target for SPX, there is an active call for SPX Mid Term Target that was shared on December 7:
SPX Long Term Forecast can be viewed here:
DJIA is also moving as forecasted. The short-term projection can be viewed on the chart below. Wave 2 was expected to be shallow and we have the reasons to believe it’s over.
Recently I shared the mid-term and long-term 2022-2023 forecasts for DJIA. They can be viewed by the links below.
DJIA Mid Term Forecast & Target:
DJIA Long Term Forecast for 2022-2023 can be viewed here:
Previous SPX & DJIA Weekly Analysis:
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