Hey, Ross here:
After a punishing pullback that’s about to enter its third month, the S&P 500 is now back where it was in early June.
But yesterday’s price action could herald a market bounce – the Chart of the Day explains why.
Chart of the Day
This is a chart of the S&P 500. Two things to notice here.
The first is the candle formed by yesterday’s price action. It’s called a hammer candlestick, because the candlestick body is short (i.e. looking like a hammer head) while it has a long lower shadow (i.e. the hammer handle).
Hammer candlesticks happen after a downtrend and are considered signals for a reversal pattern.
And as you can see, yesterday’s hammer candlestick also formed at a long-term trendline which connects the March 2023 lows AND the October 2022 lows.
The next move to watch for is whether the S&P 500 will be able to maintain this trendline or not.
If it does, that’s a good sign. If it breaks to the lower side, however, there could be more pain ahead.
Insight of the Day
The best opportunities will happen right at the beginning of a market reversal.
Yes, it’s always smart to let the price action confirm the trend before making a move.
But the most lucrative opportunities always happen at the beginning of a new trend.
So if the market is about to reverse, inaction is costly.
That’s why I’m going LIVE tomorrow at 12 p.m. Eastern to show you my #1 strategy for taking advantage of any potential reversal.
This strategy has already been responsible for multiple fast high double – and even triple – digit gains this year.
So you don’t want to miss it.
Just click here to save your seat now…
And I’ll explain everything tomorrow.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
