As you know, I don't trade reversals, there is just too much uncertainty and risk. I wait for confirmation of a trend and trade those, often looking for the low-risk entry point which defines risk. However, I do LOOK for signs of a reversal in a trend which may help to identify new trading ideas. That being said there are some very unique patterns that established on Tuesday that may auger well for such a circumstance. Besides the very strong hammer on the SPX chart that is so noticeable we find some names with 'line in the sand' patterns. Simply put a reversal area was established and quickly tested, sellers were not interested in dumping any longer and buyers stepped in. We can see this pattern on the chart below. Mind you, this is not a 'trading' pattern that I use, it's low probability and very much a 'guessing game', but I feel rather confident that the trend may well reverse. What am I looking for on the horizon? LOW volume on the selling days.
As mentioned many charts 'fit the bill', but we don't want to get hammered by this highly volatile market with surprises around every corner. Better safe than sorry.
Tag >> BUCY
Looking for a move today from the lower dollar in these:
ANR, CLF, BUCY, BTU, JOYG, X, RIG, SLB, RTP, BHP
These may be good for a short move higher or bounce, but charts are still broken.