SPX500 - Next Wave Up Could Be Underway

13 août

Here we see the importance of constantly using all the time frames to see what candles have printed.

Bears are cheering the next wave down as if it is inevitable.

But let's take a closer look...

Notice the very long wicked Hammer candle (green arrow) on the S&P week chart that printed last week.

Considering how bullish indexes are, that is an immediate "nail in the coffin" for the bearish case.

We have seen Hammer candles in the past that led to more bearish action (other green arrows).

But this candle is so bullish that it could also be called a Dragonfly Doji.

So one candle on the week chart is not conclusive, but having seen it; I now favour the move up.

This is also considering that the pivot low was a perfect 1.618 extension Golden Window capture.

And if this week's candle is shallow or anything more bullish then the next wave up may already be underway.

Not advice.