By: Tom Gentile
on January 24th, 2022
Major Upside Reversal in all three Major Market Averages
Call it a capitulation day, call it short covering, no matter the name the Dow Jones Industrial Average, the NASDAQ, and the S&P 500 all had bullish reversal days today.
The chart on the ETF that tracks the performance of the S&P500, the SPY shows the reversal as well as any (DJX, QQQ, SPX).
A Chart that Represents What the Stock Market Averages Did Today
The top two arrows indicate where the open and the closing price for the day were.The bottom arrow shows the low of the day. All that pricing between the open and low of the day is what amounted to Price Rejection.
What Price Rejection is/shows is that the markets in this case came down to a price intraday and the markets pushed it away or buyers stepped in and brought prices up away from that low price level.
This is deemed a bullish move on an intraday basis. The thing to watch for now is if there is any continued follow through to the upside tomorrow and days to come. If so. This could be at least a short-term bottom for the markets.
It could be a bull trap in that the bounce brings in opportunistic investors and or traders and then sells off again.
Top 10 Call Options in the Short-Term if You are Bullish
Should you believe in prices higher here is a list from my app Toms Option Tools that show Unusually High Call Option Volume.
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.