The day ended with an invalidation of the shooting star seen on Wednesday, the candle is neutral, worth noting that when price bounced at the 5 DMA.
$Cboe Volatility Index(VIX)$ and $USD/CNH(USDCNH.FOREX)$ look bouncy, a red morning is possible for indexes, but either bull or bear case have to be confirmed as follows:
$S&P 500(.SPX)$ Bull: Overcoming 4520
$S&P 500(.SPX)$Bear: Breaking the 5DMA
$NASDAQ 100(NDX)$ : The close looks more bullish, $Micro 10-Year Yield - main 2311(10Ymain)$ doesn’t look bouncy so a red continuation may favor the indexes. Bull or bear case need confirmation:
$NASDAQ 100(NDX)$ Bullish above 15876
$NASDAQ 100(NDX)$ Bearish below 5DMA
$iShares Russell 2000 ETF(IWM)$ : Validated the reversal candle with a red day, however there was support at 5DMA area. It that line is not broken, there may be a recovery.
Are the indexes overbought?
Yes, for the Daily timeframe, not for the Weekly one. A pullback should happen, but all of them must break a basic line, the 5DMA, otherwise the very short term uptrend is still in play.
Have a good one.
Comments
We may end 2023 at all time highs, buy the pullback and enjoy the ride. Have a great weekend!
Markets should rally into Thanksgiving unless Nvidia kills the "turkey" !
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?