Thanks to the anomaly that was last Thursday, trying to determine ranges/patterns based off that data can lead to some bad conclusions. With that being the case, I am continuing to hold my longs, while watching the markets to see a clear trend develop. No need to run, yet.
Just looking at the 3 major indices: Dow, S&P 500, and Nasdaq, the charts look almost identical, with both positive and negative indicators.
To avoid sounding repetitive, I have just posted a chart of the S&P 500, but the other 2 indices have similar setups.
The chart shows us that we have definitely made a good bounce off the intial dropping and have moved back above 1150 mark with a open and close above that line. Learn more about chart confirmation.
Usually all would seem well; however, volume could still be stronger, the relative strength index was unable to get back above 50, and based on the last candlestick in the chart, sellers took control towards end of the trading day.
In other words, a clear trend has yet to be determined… especially given that almost all charts are showing the same setup right now.