We have some very interesting price action happening in the S&P 500 and DJIA.
The first warning was on Thursday - I usually ignore these as follow up price action is required. And this we got on Friday and then again on Monday.
See the charts... second last bar (Friday trade) was a big hammer... this meant intraday price went down for whatever reason and then closed near end of the day. I would look at this as first signs of selling and the FOMO crowd (Fear of Missing Out) jumped in bought the dips.
And then on Tuesday, we had a very nice gapup (thanks to another set of the FOMO crowd) which was promptly sold into by smart money. The close was at the lows of the day.
All this points to distribution. Whether this will lead to a big correction I don't know but the market is being set up. Now the last 2 days high low will be watched very carefully by traders. Within this range, markets will just do timepass.
The trend is still up on daily charts as no support or swing low is broken.
NOTE: this analysis is based solely on study of last 3 candlesticks (I don't use indicators). Further this study has taken under 1 minute (more study does not guarantee better results).
The first warning was on Thursday - I usually ignore these as follow up price action is required. And this we got on Friday and then again on Monday.
See the charts... second last bar (Friday trade) was a big hammer... this meant intraday price went down for whatever reason and then closed near end of the day. I would look at this as first signs of selling and the FOMO crowd (Fear of Missing Out) jumped in bought the dips.
And then on Tuesday, we had a very nice gapup (thanks to another set of the FOMO crowd) which was promptly sold into by smart money. The close was at the lows of the day.
All this points to distribution. Whether this will lead to a big correction I don't know but the market is being set up. Now the last 2 days high low will be watched very carefully by traders. Within this range, markets will just do timepass.
The trend is still up on daily charts as no support or swing low is broken.
NOTE: this analysis is based solely on study of last 3 candlesticks (I don't use indicators). Further this study has taken under 1 minute (more study does not guarantee better results).
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