The market broke its four day winning streak today, as we saw an anemic low volume sell off. But before the pundits take this small opening as a reason to squawk their nonsense, I thought I would look at how the hourly charts ended up today after this nice rally. The daily chart is too vague here, but the hourly gives you a good read on where some stocks and indices landed . All very bullish.
All of these patterns by the way, are my favorite long buy set ups.
$WLT landed on the rising 20 dma.
$QQQ came within pennies of its20 dma hourly support and bounced in the last hour.
$IWM the Russell 2000 etf closed above its hourly 20 dma
$SPY closed above its hourly 20dma
$DJIA also closed beautifully on its hourly chart
$KOL also closed well even though it had a session of profit taking.
$UDN is the dollar bearish ETF. It’s at big daily resistance, but also landed nicely on hourly support.
$XLF has held a good hourly level after its breakout.
I’m loaded up with these set ups but you get the picture. You can call these patterns flags or light volume pullback wedges depending on the angle of the dangle, but they are all orderly, light volume pullbacks that look set up for higher prices.
Good luck tomorrow.
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