The downside confirmation to yesterday’s daily chart bearish engulfing candle has been rejected thus far, as we have seen a sharp upside reversal over the past hour of trading. The intraday chart of the SPY below illustrates the intraday turnaround, with the 3-minute (keep your timeframe in perspective!) bullish engulfing candle confirming to the upside. Indeed, just as longs have felt the pain over the past few months, short-selling carries its owns set of risks in type of market.
So, instead of sliding lower, the market is essentially flopping around like a fish out of water on the daily chart. We still have our overhead levels to observe, with 1335 on the S&P 500 and 2,882 on the Nasdaq. For now, though, we remain in no man’s land.
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This is a typical bear market reaction rally. I’m 1/3 SH, 1/3 cash, and 1/3 various long. Hard to get excited about the long side.
Typical bear market correction rally, in the contex of a correcting bull, in the context of a secular bear. noob.
+1 Cold, cold, cold.
Thanks Chess. Where do you find those weird pics?