I think the sharp recovery that happened when we hit support today has set up the market for a bear trap at open tomorrow.
1. Lots of stocks ended the day at or near overbought levels, setting up for a selloff Friday open.
I'm seeing same or similar setups on $COST $MSFT $AMZN all variations of rising wedges / rising flags
2. DXY: was trading in a steep falling wedge but bounced out of the pattern at the 200 MA line on the 1h chart, making me bullish USD tomorrow (makes the market weaker)
3. VIX: I'm neutral on currently, I'm seeing signs that it could reverse course and go up again tomorrow but I'm also seeing the potential for it to continue to fall.
4. Earnings for banking/financial services is tomorrow-
At least 3 of the big 4 banks have earnings tomorrow and if the economic turmoil lately produces less than perfect earnings we could see a sharp fall tomorrow.
BANKS/FIN with earnings Friday-
1. Lots of stocks ended the day at or near overbought levels, setting up for a selloff Friday open.
I'm seeing same or similar setups on $COST $MSFT $AMZN all variations of rising wedges / rising flags
2. DXY: was trading in a steep falling wedge but bounced out of the pattern at the 200 MA line on the 1h chart, making me bullish USD tomorrow (makes the market weaker)
3. VIX: I'm neutral on currently, I'm seeing signs that it could reverse course and go up again tomorrow but I'm also seeing the potential for it to continue to fall.
4. Earnings for banking/financial services is tomorrow-
At least 3 of the big 4 banks have earnings tomorrow and if the economic turmoil lately produces less than perfect earnings we could see a sharp fall tomorrow.
BANKS/FIN with earnings Friday-
- $PNC
- $JPM
- $WF
- $MS
- $C
- $USB
- $FRC
- $UHG
Comment:
*BULL Trap* not *Bear trap* oops