This Stock Market Pop Could Fizzle Fast

Sourced from: https://www.countingpips.com/2019/03/this-stock-market-pop-could-fizzle-fast/

Our February 17th study,”Get Ready For A Breakout Pattern Setup”:” https://www.thetechnicaltraders.com/get-ready-for-the-breakout-pattern-setup-part-ii/, emphasized our expectations the US Stock market would set up a larger Pennant formation together with downward turning near present levels.  This setup hashistorically, been notable from the markets also contains setup larger upside breakout movements in the past.  We believe this pattern is setting up and that drawback price MUST take place before any new upside momentum breakout can begin to unfold.
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We believe this up rotation could be short lived and want to highlight the two Engulfing Bearish candlestick patterns that have shaped recently.  The first, close to the October 2018 highs, motivated a very deep price correction which ended on December 24, 2018.  The more recent, completed just on March 8, 2019, is putting up opposition just above recent highs ($175.95) and is still a very legitimate sell signal for the QQQ.  Unless the price can breach the $175.95 level during the upcoming few weeks, then this Engulfing Bearish candlestick pattern is the key pattern driving future expectations for the purchase price.
The US stock market opened today with mixed introduction prices.  The wreck of the Ethiopian Boeing passenger jet motivated selling in the Blue Chips, particularly in Boeing (BA).  As of now, the US stock markets have recovered quite well and have pushed higher .

Technical Traders Ltd..
TheTechnicalTraders.com

Chris Vermeulen

Our belief is that today’s upside price move will falter during this week and prices will continue to decrease as the cost trend persists.  Both Engulfing Bearish patterns are very strong indications of potential downside cost trends forming.  Again, unless the $175.95 level is broken, we firmly feel the disadvantage price trend will last.  Plan and prepare yourself for a milder cost rotation prior to any upside momentum breakout routine unfolds.