The market continued selling as I expected that to happen. We only had a bright moment when the market reversed and rallied to erase all losses. It would have been a great sign indicating that what we have seen was just a pullback at the significant 4,000 resistance.
But unfortunately, the rally didn’t last long, and the market reversed again and sold off. Although the Ichimoku chart still looks good, the price is deteriorating fast:
That is not a good sign for the market. However, we were selling over old news and old fears, so technically, we are seeing a knee-jerk reaction from spooked investors. I still think next week’s inflation data will propel this market higher. Tomorrow, I would expect some recovery (hoping the 3,900 support will hold); if it will, expect the market to go higher tomorrow and into next week. Some initial selling at the opening is possible. Then we should recover it. If not, look below.
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