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All the notes are on the charts. All three major index ETF's showed textbook reversal candlesticks today. They are not the "strongest" of reversal candlesticks, but taken together with chart based resistance and overbought indicators, they should be paid attention to. In order to get some confirmation it is nice to see a gap down and a close below the open tomorrow. In fact, if there is no lower close tomorrow, then those tricky bulls probably took one of their guys and dressed him up in a bear's suit to act as a decoy.
The Russell ETF, IWM, also showed a somewhat odd Bearish Belt Hold today. It gapped up and sold off immediately and closed almost unchanged from yesterday, but down slightly. The gap being sizeable and the lower close should give weight to this pattern, but there is also a signifcant lower shadow, which is not really part of the classic pattern. I don't know that I've ever read anything in regards to how significant that shadow is on a belt hold pattern. In any case, that pattern is not more than medium reliability. However, the Russell has not made new highs for the rally, so there is still some measure on non-confirmation in the indexes this point.
