US Market's Drop Halting?

 Yes, a few days ago I saw signs that the market was shaky and secretly bearish even though it was making new highs and predicted that it would drop significantly. Since then, the S&P500 has retreated more than 1%. Everything exactly according to plan...

However, even though I did think this pullback could be more than just a small one and that it could be the start of a more significant intermediate correction, I am now seeing signs that might suggest that the market could just stop dropping and turn about around this level.

(Yes, this was why I kept saying over my past few reports that this was time to get out of your profitable longs or call options but not time yet to go on put options or go short because the magnitude of the correction isn't clear yet)

What I saw was the S&P500 forming yet another hammer candle right on its 30MA! If you have been following my blog so far, you know what such candles usually mean right? Yes, these candles occurring at significant levels are strong reversal indicators and this time round, it happened smack on the 30MA line, which is the S&P500's intermediate support line around which it has staged numerous reversals. Even though the hammer candle this time round wasn't well formed as what I would regard to be a classic hammer candle, this, along with the huge drop in bond yields and the surge in the total equities put call ratio suggesting overreaction on the bearish side, tells me that the market might just reverse out of this intermediate correction around this level once again on Trump magic!

However, on the other hand, it is also too early to call a bluff. As such, this is when we still want to wait for more evidence before committing into a directional trade. This is also when I really love non-directional trades like my Ride the Flow options income trading method as it continues to turn a profit even though the market pulled back and would continue to turn a profit even if the market reverses from here! In all 3 directions! Check it out here now!

For now, the market remains in short term bear trend within an intermediate and primary bull trend.