I was noticing how many were bemoaning the weekly candle - "so bearish", "buyers gave it all up" etc. So I decided to look up the candlestick pattern and see how it's interpreted - here's a link (one of many out there)
commodity.com/techni...sis/inverted-hammer/
As you can see, an Inverted hammer can often signal reversal patterns. Considering we are at Weekly 200ma support, Weekly BB support, and a horizontal support area from 2020, it's very possible that Friday was in fact the low for this year. Very few are calling it that, but it may be the case. Also consider that sentiment right now is at "extreme fear" - www.cnn.com/markets/fear-and-greed and also - why did buyers step in at the end of the day Friday if it was so bearish? I can only assume that some must have seen how the weekly candle was about to close.
Now, the way it works is this - if the open on Monday is higher than the close of Friday, that can signal a bullish reversal for the week. I have a feeling that may be the case considering all the points I laid out above and the feeling that CPI is finally going to drop this week. So let's keep an open mind and see what happens. As I said on Friday, if they start rallying over 3700 it's bullish. By Tuesday we should have a good idea how the market is feeling after friday's "bearish close". Good luck
commodity.com/techni...sis/inverted-hammer/
As you can see, an Inverted hammer can often signal reversal patterns. Considering we are at Weekly 200ma support, Weekly BB support, and a horizontal support area from 2020, it's very possible that Friday was in fact the low for this year. Very few are calling it that, but it may be the case. Also consider that sentiment right now is at "extreme fear" - www.cnn.com/markets/fear-and-greed and also - why did buyers step in at the end of the day Friday if it was so bearish? I can only assume that some must have seen how the weekly candle was about to close.
Now, the way it works is this - if the open on Monday is higher than the close of Friday, that can signal a bullish reversal for the week. I have a feeling that may be the case considering all the points I laid out above and the feeling that CPI is finally going to drop this week. So let's keep an open mind and see what happens. As I said on Friday, if they start rallying over 3700 it's bullish. By Tuesday we should have a good idea how the market is feeling after friday's "bearish close". Good luck
Comment:
Possible path above downtrend and then filling the gap on SPX/SPY
