Bear Market Rally on all indexes!!!Hi Peoples.
Just my two cents worth here.
I'm using chart for Russell 2000 as pattern and Bullish candles on there are better formed than the Dow, S&P and Nasdaq, but they will behave almost the same in terms of movement in the market.
I am going long on indexes and reason why is
1. Double bottom on Weekly chart (for russell 2000), with a very bullish Marobozu candle for confirmation (Hard to find this pattern and candle combination on weekly charts)
2. Strong double bottom on daily.
3.Cange of structure on 4hr and lower time frames.
4. Nice bullish pattern forming (4 hr) on recent higher high after break in structure.
I entered long monday Morning and will be looking to buy into pull backs IF the market does indeed make a move up.
As of this writing price is at avery strong resistance zone as highlighted on my chart.
IF price can move through the horizontal, falling trendline and broken upward trendline resistances then that will be further show of strength to back a bull case for at least a relief rally.
I think it is a good chance that we test the 200 ma again where bears will be waiting to do their thing but if all goes to plan and we do get to or close to 200 ma then there is plenty of good long opportunities.