December 21, 2021

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Island Reversal

Please click here for a chart of  S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

• The chart shows that a potential island reversal pattern is forming in the stock market based on the premarket data. Only after the close, it will be known if the pattern has formed.  An island reversal is a bullish pattern.
• If the island does form, it will be especially bullish because the pattern would have formed just above the support zone.