IWM
Nasdaq Comp
Dow
NYSE Comp
Sp'daily5
Trans
Summary
Hmm...a pretty interesting day huh? Those opening gains sure did spook many bears..not least myself, even though I had been anticipating further gains - the hourly chart from last evening had a very clear baby bull flag. The little flag was confirmed with the break over sp'1430..but the gains could not hold long, and we saw a very clear spike/fail.
The daily charts closed pretty badly...in fact...VERY badly on some indexes
We have bearish engulfing candles for IWM (rus'2000 small cap), Nasdaq Comp, and the Dow'30. Even though the other 3 indexes that I regularly highlight did not get such hyper-bearish candles, they all still put in significant reversals today.
So, it was a bearish way to end the week, and it would be somewhat surprising if we don't see significant follow through on Monday.
Dream scenario for the bears...
An overnight gap lower..right through the key cycle low of sp'1397. That requires an overnight drop of 18pts, which is asking a lot, but its viable. If Sunday night futures can break under ES 1390, we should see a major snap lower at the Monday open.
A little more later.