The market is not closed yet but it looks like we are going to close in green today. Yesterday was a spectacular reversal day with SPX recovering no less than 26 points in the last hour of trading. Reversal days usually "spill over" next day so I won't be surprised if market ends in green today.
One of my readers made me aware of the "symetrical triangle on daily chart, especially on Nasdaq. Let's have a look:
Looking at this chart one can argue that there is slightly bullish momentum behind this two days upside days. However, the pattern is not confirmed on other indexes. Not only this but you must be aware of the time frame. If a mini-rally starts here most likely is going to be temporary. The general picture, on long term time frame, remains bearish.
Talk to you later, after the close.
It's 5 pm. Market closed 10 points on the upside. If you are a short term bull you may rejoice at the news. However, intermediate and long time frames remain bearish.
The bearish EMAs crossing is now more evident on SPX and is starting to show on Dow and Nasdaq as well. It doesn't appear on QQQ but remember this is the ETF tracking only Nasdaq 100 not the whole Nasdaq.
Daily chart show lower highs and lower lows which is bearish. To change the trend SPX must close above the previous high (1,200). at this point is more likely we are getting a lower low (bellow 1155).