On the heels of a big intraday rebound, the SP-500 (SPY) daily chart is producing an UNconfirmed reversal from the recent downtrend.
The software sequences price into a behavior fingerprint, and when there is a match, a color or text is generated to alert the user of what is taking place. This will improve user recognition of hidden price action and facilitate better decision making.
An unconfirmed reversal is an important heads-up for general market timing — it suggests that the recent decline may be almost over. It is important to wait for confirmation because absent the confirmation, price action is still acting subordinate to an existing decline. It is also important to note that a confirmed reversal doesn’t automatically equate to a new uptrend — at least not initially — just that the recent low is a tradable low.
Here is what SPY looked like intraday, as the reversal was taking place, and in the context of the overall trends lower and then higher: