Is a miss as good as a mile? With today’s 1398.94 close, we came within a hare’s breadth of the requisite 1397.68. Because $SPX did not close below 1397.68, then Monday’s Hanging Man reversal candle is not confirmed. Until proven otherwise, yesterday’s candle is still just a candle.
If market bias and dynamic has truly flipped bullish, then there should be no problem with $SPX taking back all of its losses so far this week and it should do it tomorrow. As I said over the weekend, the markets reveal themselves on pull backs, and we are now in pull back mode. Is the market going to show strength and resume last week’s rally or is the market just going to keep heading south indicating that last week’s rally was just a big head fake and short squeeze? By Wednesday’s close we should have a much better idea about how this is all going to play out.
I’m just wondering if yesterday’s extremely low P/C Ratio is going to haunt the market for weeks to come or if we’re going to resume the uptrend lickity split?