Late Day Recovery

The market was down most of the day until it rally near the last hour of trading. The DJIA recovered all of its losses and ended the session in the black. Similarly, for the Nasdaq 100, it also recovered and closed with a small gain. The SP500 was trying to end the session with a gain but it just did not have enough strength to push it above yesterday’s close and ended down a little bit over a point. What today’s late rally did is to provide a potential pivot point for the price charts to establish a new down trend price channel. In addition, due to the late day rally, a hammer like candle was form and this can lead to an oversold rally in the coming days. Unless these indices reclaim the previous high, the current trend is to be considered down. I will be very suspicious on ensuing rallies and I will be looking for opportunities to trade the downside.