Today’s almost perfect gravestone doji signals a reversal may be underway. Making matters worse was the increase in volume.
The SPX tested an intraday high near 1:45 this afternoon and formed a double-top. As the SPX failed to make a new high, sellers appeared and did not relent as bids were hit all the way to the close.
Looking at the charts, I find it hard to believe the bulls will press their luck tomorrow, with overbought conditions still existing and resistance looming near. Of course I’m short and talking my book, but it appears we will get the pullback I was looking for.