Friday, April 4, 2014

That's nasty spider (SPY)....a nasty outside reversal


Whew, what a nasty day for the S&P 500 on the market today, an early start with new highs and then closing near the daily lows, the only bright spot being a late rally pulling the market up at the end of the day. It is an outside reversal as the candlestick price action today was outside on the top and bottom of the market price action yesterday. Note the increase in volume of the SPY today, another bad sign. The late rally may have helped with a look to a bounce on Monday, but don't count on it. If the SPY drops below 183 there could be a long way down to go. I would like to see a close above 188 on good volume before getting short-term positive. Perhaps the start of another pullback in this long bull market.

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