Tommorrow's short covering rally

This market action seems very bullish to me
I would say that we had a very good candle stick reversal patt.
If we where to follow the trend this a signal to go long again
 
Quote from hammertrader:

This market action seems very bullish to me
I would say that we had a very good candle stick reversal patt.
If we where to follow the trend this a signal to go long again
More...


:p
 
Quote from hammertrader:

This market action seems very bullish to me
I would say that we had a very good candle stick reversal patt.
If we where to follow the trend this a signal to go long again
More...

I'm looking at a 3-month daily chart of ES, which indeed left a complete engulfing candle to the long side. However, price is just beneath the 20-period EMA, where it found late day resistance. A break through it tomorrow should take us back to the 1080 zone, but a failure would leave us with a lower high and a likely revisit to yesterday's pivot low. It's been a while since the overall uptrend was breached for a second leg down (July), but you know Cramer called a top a few days ago.

Fade or follow??? :D
 
I have a good feeling about tomorrow. The $VIX seems to be relaxing, and overseas is just itching to rally. We've been down for so long. The manufacturing index is above expectations, and the market blew off CIT. I hope you guys dropped your shorts today because you shorts may be scrambling to do that tomorrow. :D
 
I do agree that tomorrow is a rally day.

My reasons:

$BDI - positive
$VXV:$VIX - positive
Huge supporting volume around friday lows
Ton of positive divergencies on RSI, MACD etc

!!!!!!!!BUT!!!!!!!!!!

If market will decide to plunge (unlikely but still) this is going to be hell of a sell-off.

Cheers
 
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