Brief thoughts for the upcoming market on Tuesday
(...unless I'm wrong)
The US market as a whole, meaning the S&P 500, Russel 2000, Dow 30, Nasdaq 100, etc… posted an expanded range bearish candle on Monday. This market is all about emotion. Add in a little forced liquidation to amplify the day. The market really doesn’t care about our indicators in times like these.
However, the day following such a strong move, we will often see a bullish harami candlestick pattern,
which can alternatively double as a bearish inside day candlestick pattern,
In both cases, the important candlestick to pay attention to is #3. It is the confirmation and oftentimes a predictor of direction. Tomorrow’s candle will be #2 if it is as I predict…
The biggest message for swing traders for tomorrow is to trade what you see, not what what you want. We have a bearish market in a rising volatility market. ORCL reports earnings overnight, which may give some hints about any bottom or continuation. However, FOMC (which is usually ignored by the market) will be reported on Wednesday.
My focus for the week is unchanged - cash is my favored approach at the moment outside of the Green Goose (GG) overnight gap system. For more info on GG signals, check out:
SPY is on the edge of a continuation or a potential bearish inside day heading into close on Tuesday, June 14th. Wednesday is indeed going to be a fascinating day!