The S&P gapped higher at the open and was able to gain further ground during the trading day. However, it’s a long way from the August swing low or 200-day MA, although has the benefit of bullish Stochastics and is a relative performance leader. The risk:reward is not as attractive in the short term, and really only has merit if it can get back to challenging 5,650s.
The Nasdaq finished with a bullish harami cross, a more reliable (bullish) reversal candlestick than a standard bullish harami. The index is close to its 200-day MA, although any hit of this would likely lead to failure given the recency of the last test. Ideally, it won’t get there, and Friday’s lows around 16,650s will be enough to act as support and kickstart a new sequence of higher lows.
Bullish haramis are good reversals, but for them to come into play they typically require opening gaps higher. Certainly, today’s lows can’t be violated. Watch pre-market for leads.More By This Author:Dow Jones ‘Bull Trap’ Expands Into Test Of 20-Day MA”Bull Trap” After Just One DayBullish Week Ahead On Dow Breakout
