It was an excellent end for the () because the index closed the day with a bullish ‘hammer’ at its 50-day MA. Taken together with yesterday’s purple candlestick makes a bullish harami, a dependable reversal sample.
The looks of this candlestick when intermediate stochastics [39,1] are on the midline is one other bullish marker. The one unfavorable in opposition to a doable bullish day right this moment is the contemporary ‘promote’ set off within the MACD.
IWM-Day by day Chart
The was in a position to bounce from its 20-day MA and horizontal help round 15,150.
There’s a breakdown hole from Tuesday to fill and I might be in search of this at the least for right this moment.
As for negatives, there was a brand new MACD ‘promote’ to go along with an underperformance change in opposition to the . Yesterday’s shopping for additionally fell properly wanting yesterday’s promoting distribution.
COMPQ-Day by day Chart
The S&P 500 completed with a paired reversal that undid yesterday’s promoting.
As with the Nasdaq, yesterday’s shopping for was under yesterday’s distribution quantity, however there have been no corresponding ‘promote’ triggers within the MACD, On-Stability-Quantity or index relative efficiency.
The S&P 500 is the index more than likely to make new all-time highs, however has the smallest commerce potential to shut Tuesday’s breakdown hole.
SPX-Day by day Chart
New secular bull markets are within the making for the S&P 500, Nasdaq and (ultimately) the Russell 2000.
It is exhausting to combat the tape and with the election developing later this yr we are able to search for additional features.
As well as, breadth metrics for the S&P 500 and Nasdaq similar to the proportion of shares above their 200-day and 50-day MAs, and shares on bullish p.c ‘purchase’ indicators are on the bullish aspect of the fence, however aren’t overbought.
As for right this moment, I am in search of upside.