Although the indexes did not show reversal signals, numerous short positions did show potential reversal signals. This became the alert that even though there were no reversal signals in the indexes themselves, further positive trading would have been confirming bullish reversals in short positions, which should have been closed immediately upon witnessing the premarket futures showing strength. Any long positions added today should be watched closely, making sure the general market remains in a bullish bounce.
October 4th Daily Market Comments
Although the indexes did not show reversal signals, numerous short positions did show potential reversal signals. This became the alert that even though there were no reversal signals in the indexes themselves, further positive trading would have been confirming bullish reversals in short positions, which should have been closed immediately upon witnessing the premarket futures showing strength. Any long positions added today should be watched closely, making sure the general market remains in a bullish bounce.