Hello traders and investors! It seems that after a Red Monday, we always have a Green Tuesday! Let’s see what’s going on in detail.
The day just started, but it seems the index found its floor at its support level around 4,287. As I said yesterday, this opens rooms for a possibility of a Double Bottom chart pattern, however, this reversal sign wasn’t triggered yet.
When will it be triggered? If we defeat the red line at 4,375. Let’s always wait for confirmation! As the greatest trader in history once said: “Do not anticipate and move without market confirmation. Being a little late in your trade is your insurance that you are right or wrong.” - Jesse Lauriston Livermore.
The index could’ve dropped more, yes, however since it is reacting right now, the possibility of a retest of the 38.2% retracement gets more and more distant. It is curious because it seems we have a Double Bottom in the daily chart too, above the black line (it is not a perfect one, but we might consider it).
The indecision is clear on the markets right now, as the past 4 candlesticks look like a bar code, and the SPX did nothing meaningful. Let’s keep our eyes on the patterns it has been trying to draw, and focus on the price.
If you liked this post, remember to follow me to keep in touch with my daily updates on stocks and indices!
Have a good day!
The day just started, but it seems the index found its floor at its support level around 4,287. As I said yesterday, this opens rooms for a possibility of a Double Bottom chart pattern, however, this reversal sign wasn’t triggered yet.
When will it be triggered? If we defeat the red line at 4,375. Let’s always wait for confirmation! As the greatest trader in history once said: “Do not anticipate and move without market confirmation. Being a little late in your trade is your insurance that you are right or wrong.” - Jesse Lauriston Livermore.
The index could’ve dropped more, yes, however since it is reacting right now, the possibility of a retest of the 38.2% retracement gets more and more distant. It is curious because it seems we have a Double Bottom in the daily chart too, above the black line (it is not a perfect one, but we might consider it).
The indecision is clear on the markets right now, as the past 4 candlesticks look like a bar code, and the SPX did nothing meaningful. Let’s keep our eyes on the patterns it has been trying to draw, and focus on the price.
If you liked this post, remember to follow me to keep in touch with my daily updates on stocks and indices!
Have a good day!
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