Today, we were supposed to crash and not recover. We crashed. And we recovered. That shows how resilient this market is. At first, the early gains turned red and all hope for a good green day was lost. But then, the supply of sellers dried up, buyers stepped in and we reversed the course rapidly. The market finished in green and that is what matters the most. Not how we start with all the impulsive investors chasing their yesterday missed moment, but how we finish seeing the big money stepping in.
And that is the most important thing. This can gain good momentum tomorrow and big guys may continue buying. If that happens, that can set the tone for next week’s trading. If this plays out, the current selling would be a pullback – which provides a great opportunity.
The daily Ichimoku chart continues flashing its bearish trend but it is filling the gap between the price and the cloud. Yes, that white space was concerning, indicating the market was overextended to the upside. Now we are sitting almost at the top of the cloud. If we bounce here and continue higher hugging the cloud, consider this a perfect bounce and confirmation of a new bull market.
The weekly chart still has work to do but it will take weeks before we see any effect. So far the trend is still vulnerable (but improving).
Given the momentum we saw today, I think the forecast will be correct tomorrow and we will see a green day:
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