Need a higher close tomorrow in order to confirm today's outside reversal bar. What's even more interesting is that the A-B-C-D-E Wave 4 correction that has started in August of last year, might have terminated today at 1270 SPX. That would potentially target: 1595-1605
I agree. We put in PIPE BOTTOM on SPX at 1276. Than it looks like a PIPE-TOP on VIX at 35-37 levels matching August 's capitulation. Refer to Thomas Bulkowski " Encyclopedia of Chart Patterns" for explanations, I can't go into it.
Good day to learn what a hammer is... http://www.tradeforgain.com/lessons/good-day-to-learn-what-a-hammer-is/ <img src="http://www.tradeforgain.com/wp-content/uploads/2008/01/image242.png"></img>
i agree as well but think its a short term rally and we sell off again. just like 2000-2001. lots of headfakes. its a bear but that does'nt mean we can get in some good swings.
I hear comparisons to August 16th bottom but look at it this way. August 16th the markets were still in an uptrend. They put in hammers, at least on the Dow and held the 200 day moving average. These charts are broken beyond belief. To talk about new highs from here is crazy. The only significant thing that happened was the bounce off 1270 and close above yesterdays high. I'm reading these hammers as indecision with hopes for a bounce...I don't know, but it still may be easier to make money shorting this thing. We will see. The market is so scared right now they could take it down 300 points tomorrow if they wanted.
Use Bollinger bands, better results. That BTW is a bullish engulfing candle besides a red bar. That shows the strength of the move and conviction. If you look closely even on the candlestick charts you see an open ended pipe sticking down, that is a pipe bottom, a reliable chart pattern traders use to mark bottoms. It also elevates the possibility of a revisit to the bottom. Bottoms usually get re-visited in spike type reversals and should be traded with great caution.