After market hours on Tuesday, news of a potential vaccine was released and a Fed member was quoted to be advocating more asset purchases, together the S&P500 futures (ES!1) gapped up. Seemingly bullish (on hot air), and hopes, there was no gap and run, but now appears to be gearin up for a gap and close (or worse, reverse).
It is still early, but IF today’s close is at current level or lower, then a gap up is accompanied with a bearish engulfing... which is perhaps me bearish than ever. This is over and above the seemingly double top of a bear rally that has weak support from the MACD.
IF is continues as expected, reverses and plays out, then the path of least resistance is through the red ellipses, with downside risks. Watch the widening wedge supports as breaking down of those would be very very bearish.
Neutral at best now, with a bearish bias building up - fast.
It is still early, but IF today’s close is at current level or lower, then a gap up is accompanied with a bearish engulfing... which is perhaps me bearish than ever. This is over and above the seemingly double top of a bear rally that has weak support from the MACD.
IF is continues as expected, reverses and plays out, then the path of least resistance is through the red ellipses, with downside risks. Watch the widening wedge supports as breaking down of those would be very very bearish.
Neutral at best now, with a bearish bias building up - fast.
