Tall shaven head and shaven bottom candlestick is a graphical representation of the powerful 2.39% upswing today. Need to look for follow through on Wednesday
S&P 500 Daily Candlestick Chart
Some points from the above daily chart of the S&P 500:
- A strong move back above the 50-day sma.
- Closed above resistance of 1950.
- I posted a chart for the break below the 50-day on Monday.
- What a difference a day makes!
- The shaven head and shaven bottom candlestick is a graphical representation of the move.
- Shaven head represents a close at the high of the day.
- Shaven bottom represents the open as the low of the day.
- In other words, no dithering.
- The market opened at the low and closed at the high
- Bodes well for a follow through on Wednesday.
- The volume is the fuel that drives the market. Must have volume in an uptrend. Volume was ok today.
- If the break holds, the next resistance point is 2000.
- A break above 2000 indicates a test of the 200-day sma.
- And, …………
Risk on sectors dominated the action today
S&P 500 Sectors
“Technical Analysis is about probabilities.”
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