The upside reaction to the “increase liquidity news from central banks” was impressive. Question of the day…Did it “change” anything in the big picture, pattern wise?
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After large up or down days, I like looking a big picture charts, to keep things in perspecitve.
Back in May when the 500 index was hitting resistance line (1), which dates back to the 1987 high, the majority of the global markets were hitting resistance and creating rising wedges, which was a good time to lower risk exposure or if aggressive a great time to establish short positions (see post here)
It is easy to mentally get jerked around by these big up or down days. Keep the big picture in mind at times like this, as the 500 index remains inside of a narrowing flag/pennant pattern.