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Bearish Engulfing signals more down but resilient BULLS fight back


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#1 dTraderB

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Posted 11 June 2019 - 05:56 PM

Bears failed to go for the jugular as an early rally fizzled out and SPX fell quickly to yesterday;s close and then some. 

However, bulls fought back strongly and kept the bears at bay for the rest of the session. 

 

So, while we got a bearish engulfing daily candle that should bring more downside one has to admit it is not a sure thing since soon this becomes consolidation in an uptrend instead of an ST TOP. Yeah, that happens, market is dynamic, in flux, so patterns can quickly change from bearish to bullish and vice-versa. 

 

Last chance overnight and tomorrow for the bears to press home the advantage of the last 2 days or else the bulls will grab the initiative ans send this rocketing to new highs by Friday!

 

NORTHMAN TRADER says it better than I do:

And this is what we ended up getting today:

SPX2-9.png?resize=639%2C279&ssl=1

What’s frankly odd here is to see two distinct bearish candles back to back, a shooting star and then a bearish engulfing candle. I don’t recall ever seeing this specific combination. Maybe some other technicians can chime in here.

The technicals are trying to tell us something, BUT these types of candlesticks are not yet a confirmation!

Further weakness is required for bearish confirmation of this reversal pattern, i.e. a down day tomorrow, and, if it confirms, then, technically speaking, we can expect a lot more downside in the price action in the days ahead. But keep in mind, this market is very headline driven as we saw again last night. We’ll know more tomorrow. 

 
 

 



#2 dTraderB

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Posted 11 June 2019 - 05:59 PM

Sven HenrichVerified account @NorthmanTrader
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1:11 PM - 11 Jun 2019


#3 dTraderB

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Posted 11 June 2019 - 06:01 PM

Maybe but I need confirmation....

 

David Larew @ThinkTankCharts
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The VIX - under the 10 EMA is a sell signal and a buy signal for equities - Under the 200 DMA, but not under the 50 DMA.

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2:33 AM - 11 Jun 2019


#4 dTraderB

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Posted 11 June 2019 - 06:03 PM

More from one of the major official unofficial voices of the Chinese Govt on Twitter:

 

Hu Xijin 胡锡进 @HuXijin_GT
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From information I have access to, there is no sign that China is relaxing its countermeasures against US trade war. Chinese basically have no trust in the mild signals the US side sent occasionally. Will there be a breakthrough at G20? I dare not be optimistic at this moment.

11:10 AM - 11 Jun 2019


#5 dTraderB

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Posted 11 June 2019 - 06:05 PM

ohns Charts @johnscharts
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$SPX update with rejection at resistance last two days. A break through this and cloud may be a nice pop, but recent run has been steep. Consolidation or slight pullback would be healthy

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1:43 PM - 11 Jun 2019


#6 dTraderB

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Posted 11 June 2019 - 06:07 PM

I tried ICHIMOKU but can't seem to get as much benefits as many others do

 

 @johnscharts
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$IWM bearish engulfing off shooting star

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12:22 PM - 11 Jun 2019


#7 dTraderB

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Posted 11 June 2019 - 06:10 PM

My condolences

 

 @zerohedge
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"The Last Two Weeks Have Been Quite Hard": Banks Sound The Alarm On Q2 Trading Revenue



#8 dTraderB

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Posted 12 June 2019 - 05:12 AM

_ErzqsW2_bigger.jpgHolger Zschaepitz @Schuldensuehner
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In case you missed it: #Germany gets a recession warning as investor confidence plunges. Sentix gauge turns negative for the first time since 2010. Euro-zone sentiment also drops as U.S.-China trade war flares https://www.bloomberg.com/news/articles/2019-06-11/germany-gets-a-recession-warning-as-investor-confidence-plunges 

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3:33 PM - 11 Jun 2019

 



#9 dTraderB

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Posted 12 June 2019 - 07:14 AM

 

 

 @ThinkTankCharts
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S&P 500 - Gravestone Doji, followed by a Bearish engulfing, and failure at the swing. The lower gap, 20 EMA and 50 EMA are at 2843, so possible move down to that point. Inverse H&S in play above 2800??

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5:16 AM - 12 Jun 2019

Edited by dTraderB, 12 June 2019 - 07:17 AM.


#10 dTraderB

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Posted 12 June 2019 - 07:18 AM

David Larew @ThinkTankCharts
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The NASDAQ - failure at the 50 DMA and down, two days in a row. Dog and Pony show in Washington with the FAANG stocks. Congress wants to protect you by extracting donations to their political campaign from big Tech.... I mean to protect your privacy. :)

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5:05 AM - 12 Jun 2019