Head and Shoulder Patten. Recently may rebounce and then bearish down.
Summary for the day today: (Mitch King)
After four consecutive down days it is not surprising to see buying kick in
for a snap back rally. The market sold off this morning in anticipation of the
upcoming economic reports, but a bottom was established at the time
reports hit and heavy buying began.
We should see another 1-2 days of buying before more selling occurs. We do
, however, have initial jobless claims and continuing claim numbers tomorrow.
Wall Street will be keying in on this so if the number is substantially greater than
expected, it could spark some selling again.
Therefore, my estimation is: if you bullish, hold it. Bearish, hold it as well, because in recently two or more days , we may see some buying and the market will bounce back, as long as it bounced back, start to short,, because the head and shoulder pattern indicate a short and medium term of trending down.
Chart reading today for index:
VIX: Bearish Engulfing, a reversal signal.
Nasdaq: Bullish Engulfing
DOW: LH,LL with lower volume
S &P: LH, LL, piercing pattern, not sure bullish or bearish.
In sum, the estimation is : tomorrow market direction mainly depends on the report. 1-2 more days of buying is possible and market may rebounce and then trend down will continue.
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