So no ‘sell’ signal for IWM today in the 60min time frame and no ‘sell’ signal for $SPX on the daily chart.
For today, $SPX gave us a Hanging Man candle, which is another potential reversal candle. Yesterday’s Dragonfly candle is supposed to be more reliable than a Hanging Man, but the two together may still bring about a pull back of one degree or another. Of course, this is pure conjecture at this point. Thing is, $TRAN gave us it’s own indecision Hanging Man, as well, and $TRAN often tips its hand before other indexes or sectors do.
I’ve circled on the chart below other places where potential reversal/indecision candles have appeared in the recent past, and you can see what happened next. I’ve also added a third trend line to the chart, the red line, which is something that I’ve been playing with for the past few days. I may take it off tomorrow. Don’t know.
The bottom line is that $SPX remains above the 200MA and and above all the trend lines I’m using. As long as this continues then it really doesn’t matter what kind of candle we get on a daily basis. I don’t know if $SPX can manage to take out 1292 tomorrow but if not then and if we don’t get a reversal in the meantime, then 1292 should fall early next week, or famous last words.
Today was a perfect example of why the close is the only thing that matters. It certainly looked as though $SPX was hell bent to close below 1268.10 but then dip buyers came in off the sidelines right on cue.
Money in the market is money at risk.