Spot On Signal In Advance Of Ugly Sell Off

Yesterday stocks traced an ugly reversal pattern with heavy selling.  The last time such a pattern was seen was in August of 2017.  Normally such a pattern is negative for the stock market in traditional technical analysis.  In extended markets, such a pattern is often also the top.

Yesterday’s Morning Capsule gave you a spot on signal ahead of the sell off. In the Morning Capsule we wrote:

The momo crowd is aggressively buying stocks in the early trade pushing Dow futures to over 26000.