Another day of relatively modest action, although the S&P did finish with a bearish inverse hammer which may lead to further weakness tomorrow. A retest of 1,987 would still honor the trading range delivering a down day, but keeping the larger bullish picture intact.
The Nasdaq closed the day with a bearish engulfing pattern. Today's close leaves room for a larger move down, with the 20-day MA the most likely target.
The semiconductor index didn't expand on yesterday's bearish engulfing pattern, but the inside day is a swing trade opportunity: trade break of high/lows - stop on the flip side.
Like the Nasdaq, the Russell 2000 finished with a bearish engulfing pattern, although the downside target is nearby channel support.
Finally, the Dow closed with a 'gravestone doji' as it failed to close above 17,100. There is a potential double top despite the 'V-recovery'.
Tomorrow is best set up for bears to follow through on indices' bearish engulfing patterns. More flexible traders can look to swing trade the semiconductor index; long may also find some joy here.
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