SPX500
Indexes bouncing after the crash low.
But here is a pattern we have seen many times.
It is the very lucrative 3 wave corrective pattern where the third wave is the cause building Wyckoff "Creek."
Most of the examples we have looked at have been in bullish phases and so we have seen a bullish Creek. But here this is a bearish phase and so this is a bearish "Inverted Creek."
And put simply; it is a shallow ascending channel.
The shallowness signals downside weakness.
This doesn't prove another wave down but it does show weakness in this area and at the very least the low will likely be re-tested.
And that could lead to another wave down.
Notice also how the second wave down is stronger than first bounce recovery. That is also a clue.
Also considering higher time frame and how large the previous bearish momentum candle was on the week chart; this will probably continue lower sooner or later.
Currently it is printing a lower wicked candle so perhaps it may have a little pop upward at the market open, but either way; it looks quite bearish here 👍.
Week chart:
Not advice
Indexes bouncing after the crash low.
But here is a pattern we have seen many times.
It is the very lucrative 3 wave corrective pattern where the third wave is the cause building Wyckoff "Creek."
Most of the examples we have looked at have been in bullish phases and so we have seen a bullish Creek. But here this is a bearish phase and so this is a bearish "Inverted Creek."
And put simply; it is a shallow ascending channel.
The shallowness signals downside weakness.
This doesn't prove another wave down but it does show weakness in this area and at the very least the low will likely be re-tested.
And that could lead to another wave down.
Notice also how the second wave down is stronger than first bounce recovery. That is also a clue.
Also considering higher time frame and how large the previous bearish momentum candle was on the week chart; this will probably continue lower sooner or later.
Currently it is printing a lower wicked candle so perhaps it may have a little pop upward at the market open, but either way; it looks quite bearish here 👍.
Week chart:
Not advice
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Creek has led to a V shaped recovery pattern separation, so that has nullified the bearish cause for now and we'll see what sort of bounce comes here.
It could be an opportunity to short more weak and overextended stocks or exit weak long positions if required 👍.