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Today could be a first “Big Reversal Day” day in almost 4 years!
If the SPX closes down today, it will be the first “Big Reversal” (day when the SPX was up 1.4%+ and closes down on the day).
I shared with John Melloy of CNBC that an unusual number of “Doji Star” reversal patterns took place at the end of the year. See John’s CNBC Pro article (HERE) More of them in a cluster than I have seen in the past 35 years.
The patterns have not proven a thing so far, other than the potential that key trend reversals could be in the cards.
Today’s potential Big Reversal day (if the SPX closes down) become a little more important. The Power of the Patterns suggested that Global Dashboards and Shoe Box members, as of two weeks ago, to become the most defensive they’ve been in the past couple of years with slow money assets.
This is a big bearish wick today friends….don’t overlook what the message could be up here!