Posted in Daily Report
By: Tom Gentile on May 16th, 2022 • 2 mins read
Is the Market Finding Support at Least for Now?
One day reversal usually do not speak for a trend forming.
Usually the security needs a day, two or three follow through.
Japanese candle sticks are a technical chart view and means to assess reversal or continuation patterns for securities.
One could make for a case there is a Morning Star Rversal pattern forming on the SPY, so long as things close here for today, or at least close with the close higher than the open on the day.
Friday saw a gap down and bullish reversal and ended up closing higher than it opened.
This ahs happened before only to see the markets continue its selling the next handful of trading days.
The Markets are Seeing Bullish Follow Through for Now
Today’s price action is one that, at the time of this writing is showing follow through to the upside and so long as it stays bullish for the day, that would be a bit of conviction for those with a bent towards being bullish.
I want to also provide the technical view of an overhead resistance where thins may stall or the bounce ends. It is at $410 as we see it.
Should any long positions be taken in any security, a price move not only to, but above (preferably on strong volume for conviction), that resistance point should bring a bit more upside.
I am not calling for a full-scale jump onto a long-term bullish moindset, but a bullish pop for a trade might be worth discussing with your brokers.
Here are the images of the bullish Morning Reports lists
The bottom two lists one would be looking at those options that are Calls.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.