PRUDENT INVESTORS PAY ATTENTION — STOCK MARKET TRACES AN IMPORTANT REVERSAL PATTERN $DJIA $SPY $IWM $RUT $UAL $CCL $RCL $NCLH $AAPL $GOOG $FB
Investors are getting concerned about the coronavirus again.
They’re now worried after frenzied stock buying by the momo (momentum) crowd, who essentially ignored the deadly virus. In the U.S., cases are increasing in many states.
There’s an important technical pattern in the stock market called an island reversal. This one is ominous. Offsetting this negativity is the Federal Reserve’s full-tilt stimulus.
Let’s explore this pattern with the help of a chart.
Chart
Please click here for an annotated chart of the Dow Jones Industrial Average ETF DIA which tracks the Dow Jones Industrial Average DJIA.
Note the following:
• The chart shows that an island was formed by two gaps, one on the left and one on the right.
June 15, 2020