Bob,
The Nas Daily bars show an Outside Day Reversal...
And in fact it was strong enough to cover two previous days.
These bars can also be called a 2 day reversal.
An "Key Outside Reversal Day" is also in place, but for it to become a 'Key' we have to wait and see if the initial reversal holds. "Murphy says that "the reversal day itself is not a major pattern, but it could be..., given the right circumstances." So one has to look at other factors.
In my opinion..., his Key Outside Reversal Day comes at a significant juncture in the Nasdaq chart and this pattern should be watched carefully.
As to a 3 day Buy Wiggle.
On todays close.... the second day is in place and the chart looks very positive.
The 3rd day must take out the 2nd days low and close above the first days high. Very good chance this will happen as today is a tight bar in the top 3rd. So the odds look to be in our favor for a wiggle and a strong "Key Reversal."
If your going to trade the Index's...., futures, options, or even using SPY, QQQ, etc., you need to know these bar patterns. They're signals that hint at changes in market psychology.
Today is also the 4th day of a 5 day pattern that's bullish.
Lets see what happens in the follow through...?
BTW.., the OEX has the 2nd day of a wiggle, but not the Dow or SPX or RUT.
Chip |
