Reversals?

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The past week has been crazy, and the moves continue to be crazy. Investors are thrown between hope, greed and fear on a daily basis.

Having longer term views in this market is almost impossible. The yields, USD, China/US crisis etc. narratives are all becoming slightly “worn out”.

Much can still happen, but we are seeing some very big and important reversal candles today. 

The SPX is putting in a very big hammer candle today, confusing the bearish crowd.

Believe it or not, but NASDAQ is making the biggest bullish candle in a long time. This was not in investors’ minds when we traded 2% lower earlier in the session.

The yield story has become global and everyone talks about it. Note the massive shooting star in the US 10 year bond, another reversal.

For the ones looking at the yield chart, yields making a big hammer candle that is very rare. 

VIX opened and decided spiking early in the session, but as the reversal in equities started taking place, the VIX fell sharply and put in a big reversal candle today.

These are fast markets, so be prudent with how much risk you take, but the various reversals today could be setting up a squeeze the other way.

 

Source, charts by Tradingview