Many are already looking for a bottom to form in the indices. However, recent weakness in the $QQQ has made us a bit cautious for now.
Despite a longer term bullish view on the market we do not believe we are out of the woods just yet.
We don't put much much emphasis on candlestick patterns compared to chart patterns order flow and our system but reversal spikes and inside days are two we definitely pay attention to. Today had an inside day candlestick pattern. Normally inside days do not have much accuracy...except for those that form in a specific manner and time-frame.
So what right? Well, if you take a look at the last instances 2 out of the last 4 resulted in a significant pullback and all 4 resulted in a bit of a shakeout before continuing higher.
Which price action can follow? Our system tells us close to December 15th to 21st there should be a fairy decent rally into the end of the year. We have set price targets for $QQQ $SPY $DIA along with several individual names that are setting up. IWM: Significant consolidation builds significant momentum
$SPY: Continues to remain in it's rising channel
In our next post we plan to dive a bit further into Cryptos along with leading sub-sectors in the tech space set to generate growth.
Talk soon!
-J