On Wednesday afternoon I stated that the markets were poised to put in some potentially bearish reversal candlesticks while stating: Potential means just that… we need to see some follow thru to the downside tomorrow and preferably into next week in order to confirm…
So far the action price action since then, especially with today’s sizable gap up, has been indeterminable and so I continue to patiently watch as the bulls and bears slug it out here at this potentially key technical juncture in the broad markets. Here’s a zoomed in daily chart of the QQQ which looks very similar to the $SPX. At this risk of oversimplifying things, I’d say that any close or solid move above Wednesday’s highs in the major US indices would be bullish and likely lead to additional upside while a close or solid move below the Thursday/Friday lows on the $SPX & $NDX add to the case that the markets may have put in a significant top last week with more downside to come in the near-term+. Until then, anything goes so best to keep things light for now.