I put up a chart earlier in the day that showed a potential Bull Flag formation in the Q’s and said that a close at 55.90 would break Q’s out of formation. While this did happen, there is now a potential Bear Flag pattern in formation with the last 5-6 candles today. This could also be a new rising channel but the only way to find out is if the Q’s can manage to get back above and preferably close above 56.42 before they break down and out through the bottom of this new rising channel.
Chart courtesy of FreeStockCharts.com
Yesterday we had a 95% down day with a $TRIN close at 5.58. Today we had a 91% up day with a $TRIN close at .36. These kinds of swings just make this market very difficult to read. At least for me, anyway.
So nice snap back rally, blah, blah, blah. $SPX did not take back all its lost ground but is now about 2pts away from having a positive week. We got back into that little spinning top doji from Tuesday and that could mean that $SPX will run right up that candle to 1269.37 tomorrow, which was the high from Tuesday. Low volume tomorrow so who really knows?
Chart of $SPX showing it holding its own, but not much more. Really need to see it start taking out swing points, as in 1266, 1277, and then 1292. Thought they’d short squeeze the market this week and take out several of those swing points, but no. Still, the chart doesn’t look that bad and as long as $SPX can manage to stay above the 200MA this week, then there remains a positive bias to the market.
Enjoy the three day break and GL in the New Year.