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(corrected) Island Reversal

|Includes:ProShares UltraShort S&P 500 ETF (SDS)

Could we call the Monday-Wednesday action in the DJIA an island reversal?

DJIA gapped up Monday well above Fri Nov 20 close and gapped down Friday Nov 27 leaving an island of top ticks over 3 days.  See an intraday chart courtesy of Todd at Principal Analysis.  See that stranded DJIA movement.  It's an island; (gaps on both sides) not connected to prior or later action.  

Also to be watched going forward, the new DJIA high on Monday Nov 23 was not confirmed by other market averages.  In addition, many other technical and sentiment indicators are looking bearish.  For example, newsletter writers are the least bearish in 4 years, according to Investors Intelligence.  

Disclosure: long SDS



 

Stocks: SDS