Stock Market Update Wednesday 24, 2024 Although the S&P 500 reached a new all-time high today, a closer look reveals an interesting story. The overnight increase in stock index futures reversed in a clear decline, starting around 1 PM. It's important to note that there wasn't any significant news to explain this change. Instead, it seems a skilled portfolio manager made a strategic move, guiding the firm's trading desk to smoothly handle the rest of the session and carefully handle sell orders. S&P500 Had a Reversal Down
Away From Stocks: a weak five-year Treasury auction coincided with that afternoon weakness and helped push yields higher by a few basis points nearly across the curve. WTI crude popped back above $75.34 as weekly inventory numbers registered an outsized drawdown, gold retreated to $2,012 per ounce and the VIX settled just north of 13.13 closed up 4.70%
S&P500 Had a Reversal Bar Down
A reversal bar down in technical analysis refers to a specific type of price bar on a financial chart that suggests a potential reversal in the prevailing trend to the downside. This pattern is often associated with a shift in market sentiment from bullish to bearish.
Characteristics of a reversal bar down may include:
Candlestick Pattern: It is commonly observed in candlestick charts, where the reversal bar down is represented by a single candle with a long upper shadow and a shorter lower shadow, indicating a rejection of higher prices.
Price Action: The closing price is typically lower than the opening price, signaling selling pressure. The overall appearance of the candle suggests that buyers initially pushed the price higher, but sellers took control and forced the price down by the end of the trading period.
Volume: An increase in trading volume during the formation of the reversal bar down can add confirmation to the potential trend reversal, indicating higher participation from market participants.
Context: The significance of a reversal bar down is often assessed in the context of the overall trend and other technical indicators. For example, it may be more meaningful if it occurs after a prolonged uptrend.
The price has closed below our dynamic resistance, and the negative divergence persists.
Another close below our dynamic resistance, negative divergence continues.
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