We shall see if these hammer candlesticks, out of Japanese candlestick theory, hold true into the closing bell for the daily charts. Many major index and sector charts are printing these potentially bottoming candlesticks today, which would require a close right here or higher in order to qualify. In addition, and here is the big point, HAMMERS REQUIRE UPSIDE CONFIRMATION. Otherwise, they are just traps to lure in faulty dip-buyers before we crack much lower.
More on the recap after the bell, especially if these hammers hold, as you can see the potential on the Russell 2000 index daily chart below. In addition, note the hammer is forming right at a huge level, prior resistance now turning into current support?
________________________________________
Indeud
Hammers… Yup, hammers.
like to be a nail
Dip buyers have been rewarded time and time again. Occasionally they are burned.
I just can’t get excited about the downside here when I compare where stocks, bonds, currency, VIX are today vs June 4. Jaw dropping how well stocks are holding up in the sewer of a news flow we’ve had.
When the only tool you have is a hammer, every problem looks like hours and hours of fun.
LOL
If I had a hammer, I’d hammer in the morning, I’d hammer in the evening…
nearly identical hammer 7 days into may at the same resistance. And it broke down sharply and quickly.