Tomorrow’s action is going to be extremely important. We have bearish shooting star doji’s all over the place but these are only a warning for now. What’s really important is whether or not this current rally leg continues tomorrow.
Today was a pause day, which is to be expected after markets went overbought on Wednesday along with Wednesday being a 90% up day. If the market dynamic has flipped back to ‘buy the dip,’ then today’s dip buyers should meet with instant gratification tomorrow. On the other hand, if this latest move is merely a dead cat bounce in a downtrend, then tomorrow the markets should struggle to stay green and will most likely end in the red.
Where I come from, the eternal question is “Green or Red?” but this has to do with chili. For tomorrow it’s the same question, green or red? If we should close nicely green tomorrow, then longs will get more mileage out of this most recent move. If we close red, then it’s back to the downside.
I think it’s really going to be that simple, or famous last words.
GL and be careful.