Another gap lower on the open, followed by a gap fill and weakness in the afternoon on above average volume - hence the reference to Groundhog Day. Today we carved out an inverted hammer. Unlike a regular hammer, the inverted hammer requires confirmation in order to complete the candlestick reversal signal. The ideal scenario would be an open above the inverted hammer's real body with a higher close, or a bullish engulfing bar.We have positive divergence on the 60 minute timeframe and the McClellan Oscillator is extremely oversold. Momentum is with the bears but we are overdue for a bounce.
Economic calendar for tomorrow: Productivity at 8:30 and Factory Orders at 10:00
4 comments:
great analysis on the indices Jamie.
basim.
Hi Jamie,
"Groundhog Day", I would add to my favorite movie list :) Starring Bill Murray and Andie MacDowell.
http://imdb.com/title/tt0107048/
Thanks Basim,
Futures are up 17 points this morning, so we could see the beginning of a reversal.
Hey Jaoa,
Yes, "Groundhog Day" is one of my favorites too and almost made the top 20 list. In fact it is such a popular film that the term -Groundhog Day - has entered the common vernacular as a reference to an unpleasnat situation that repreats itself.
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