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, …………

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Risk on sectors dominated the action today

S&P 500 Sectors

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“Technical Analysis is about probabilities.”

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