We actually had another "up" day in the market. Shazam! And yet the charts keep looking weaker and weaker, and I am still looking for that reversal. But as I said in a previous post, "Don't fight the tape". Confusing isn't it?
So here's today's deal. Europe now has announced that they have a plan of what has to happen. OMG~ A plan of what has to happen, but no actual plan to make something happen. Golly Gee, I'm not excited!
In the meantime we are stuck in what is now a trading channel. And today's candlestick, while not a classic Shooting Star, it is an Inverted Hammer (think of Thor's Hammer upside down). It tells us that the buyer's pushed hard and forced the price up, but couldn't hold the line as the sellers came in and pounded them back down. It is a reversal candle, although not as strong as a Shooting Star (the same basic shape, but the closing price is lower than the opening price giving a red body)
Add to the day's inverted candlestick the 30 minute intraday chart below and you will notice very strong selling that accelerated (increasing volume) into the close. This action will normally continue over into the following day's opening action.
And lastly, we hit the top of the trading channel which is a logical place for a reversal.
Taken together the charts below are telling us to be ready for a reversal to the downside tomorrow. But since you are an astute trader you will watch the news closely in this news driven market, and you will always remember "DON'T FIGHT THE TAPE"!
CURRENT MARKET TRENDS
Long Term (Weekly Chart) – Sideways (Trading Channel)
Medium Term (3 day chart) – Sideways (Trading Channel)
Short Term (Daily Chart) – Down
Intraday 30 Minute Chart
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