If you recall, stocks kicked off the week in bullish mood right from the opening bell, and I concluded that day’s commentary with the note that Mondays in a bull market tend to have a bullish bias, but that says nothing about the week.
Today’s strong trend down day, and several patterns that it has created suggest that the bulls may be under a lot of pressure now.
Here are a few patterns to keep your eyes on:
These are all bearish patterns that represent the market giving President Trump a big thumbs down with regard to his behavior.
Some might even go so far as to say he’s at risk of being FIRED!
However, we don’t need to worry about that quite yet, and more importantly our focus should be on whether today’s action is the beginning of a new trend or another fleeting one day victory for the bears.
The key for the next few days in determining whether or not the market will continue lower is to simply wait for a 30 minute opening range breakdown below today’s low. If that happens expect more downside.
However, until that happens remember how resilient this bull market and the President have been at bouncing back from bad days.
As for getting bullish, I’ll wait for a positive pattern to develop first.
S&P 500 (SPY) Classic looking double top. Sitting in a support area, but closed under the 50 DMA and had a very convincing trend down day. 235 could be support, then 233, and 231.60 is the major swing low. Resistance tomorrow will start at 236.75 then 237.75
