Stock indexes fall apart in final minutes of trading

****** NOTE: Next post November 25th *********
UPDATE: Just returned from NYC. I will update this blog after market close on Nov 26th.

I’ll be taking off from November 17 to the 24th. I’ll try to answer emails when I can get to a computer.

On Friday (Nov 14th) the indexes looked like they would hold most of the gains from the big rally on Thursday, however in the final seven minutes or so of the session the selling came back in and took the indexes to steep losses. Point moves that would normally take days to complete and now done in minutes. The markets seem to be bipolar. That triple bottom looks to be in danger of giving way, and that pivot that would indicate a trend change looks like a difficult challenge at this point (refer to previous post for those reference points). The trend still has to be given the larger weight of the evidence, and the trend is still clearly down. It is still possible that the triple bottom on the S&P or the three drives pattern on the Nasdaq will hold. That would create a very bullish set-up. I’m not sure how much to read into the negative price bar on Friday that was basically formed in just a few minutes. Maybe it will get reversed on Monday. It seems like the tail on the candle from Thursday is the key area to watch to see if prices can still be rejected in that same area, or if prices start to trade in that tail area and start accepting those lower prices. If they do then the path of least resistance should still be lower. If there is still rejection in that area then I’d expect a challenge of that pivot from Nov 5th. It will likely be resolved before I can get my next post up.

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