The Bears Continue to Outnumber the Bulls

The Bears continue to outnumber the Bulls yet another day. Yesterday’s Harami candle gave no help to Tuesdays Hammer causing price to close below the 50-sma (daily chart)

In the Hit and Run Candlesticks Trading Room, I have spoken several times about the 60-min chart and that price is below the 200-sma. Yesterday the Bears were able to close price below the 200-sma on the 2-hour chart. A few banks report today, and weak reports will likely drop price into the 4-hour 200-FWL (our dotted deuce line)

Bottom line here the SPY (SP-500) and all its friends are looking pretty sad; there is a lot of weight put on the banks reporting today.

FREE Trade Idea – Today is the last trading day of the week –  No trade idea offered today.

Use today as a day to take profits and count your money. Use today to reflect on your trading this past week then take your dog for a walk.

Spotlight Trade – CVI (Short)

CVI –  Has fallen 12.25% since we posted the trade to our subscribers. CVI printed a Bearish candlestick top followed by a Blue Ice Failure. Yesterday price closed on the 200-sma, and the chart still looks like price may drop further.

Blue Ice Failure Pattern Basics

Imagine someone falling through the ice, then trying to come back up to the hole they plunged through. On their way up, they bump up against the ice and then fall back down again. This is the analogy behind the Blue Ice Failure Pattern (a term coined by David Elliott).

In stock charting terminology, the Blue Ice is the blue colored 50-day simple moving average (50 SMA), and price is the subject taking the plunge. More specifically, price is falling, it approaches the 50 SMA and plunges down through it. Price finds support after the plunge and starts to rally toward the 50 SMA. Price reaches the 50 SMA area and tries to break up through it but bumps up against it and then falls back down again.

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© 2007 – 2017 Hit & Run Candlesticks INC. – Right Way Options – Strategic Swing Trade Service – Trader Vision – All Rights Reserved. Terms of Service Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.