For those in the fintwit community obsessing over the fact that we closed with an "ugly hammer", I'd implore you to go back and look through some of the more recent "ugly hammers" that SPY has closed on the daily, and what the following price action was.
Yes, I know some of these aren't perfect hammers, but I think we can provide a little flexion in that definition.
Just chill. Until we have continuation of selling (and maybe a catalyst that would justify continued selling) then let's assume the uptrend is still intact.
Comment
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Following day closed higher, but I'll be the first to admit it didn't look great. Listen, I'm not saying corrections can't happen. The chart up has 3 decent pullbacks to the 50ema
We could see this 420/425 fairly nearterm, but I'm not ready to call a market crash or a massive correction down to levels that other individuals on this platform are boasting. I'll need more confirmation than a single candle.
It is likely people see what they are expecting or wanting to see. But fear every now and then is good.
centralcaltrainer
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Those candles look nothing like today's. this candle is telling a different story. buyers failed and the body is heavy to the downside with no buying back...
Trendoscope
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@centralcaltrainer, one day doesn’t define trend and neither it will ignite trend. There is fed announcement this week. Market may be anticipating volatility and keeping out.
ivanwolfgang
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@centralcaltrainer, Why do you say these other candles look "nothing like today's"
An inverted hammer tells the story you just mapped out. A wick at the top implies price at one point reached a high, but buyers didn't prevail and it was sold down and closed at or near low of day. That's the story. Every circled candle shares that same story, no?
CJS04
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@ivanwolfgang, you also need to look at a simplified chart like this or go ahead and see where we are in the wedge...