Today we saw a further rally, however the pullback in the last 2 hours has created a shooting star candle on the daily, with the 4 hour giving the even more bearish dark cloud cover. The last few days have good size upper shadows to the candles which the Japanese call 'rising in agony'. Shooting stars are not the most bearish patterns so tomorrow is important to see if we get a confirmation.
Stoch divergence holding on the daily and turning down, and even better on the 4 hour chart.
Although we haven't made it to the WR1 or MR1, the bullish reversal at 25800 may well be enough to turn it down from here. On a daily level, it made it to R2 and has been rejected back to the pivot.
Thanks for caution to shorts- I did short at 25885 on US 30 and flipped over to short Sand P at 2873 so feeling lucky. Was a nailbiter cuz i thot it would race on after I got position, "WHEW!"
@chrisatom, Yes Sir. Added to it. I'm shorting high strike SPY index calls in vertical spreads. Nearly got spooked into rolling up today at 2867 but it eased off in the nick of time. Bought some DIA puts near the close so I'm all in. Now watch "Bull-up Thursday"... I got to get some sleep!