By the end of the trading day on Friday, the universe of stock charts looked pretty much like this:
What I mean is that I was seeing shooting stars everywhere. As described on Investopia:
Shooting stars indicate a potential price top and reversal. The shooting star candle is most effective when it forms after a series of three or more consecutive rising candles with higher highs. It may also occur during a period of overall rising prices, even if a few recent candles were bearish.
Here are some ETFs that illustrate this beautifully; indeed, I can’t remember seeing so many of this pattern……………..ever!
If there are any bears left on the planet, what they will want to see Monday is an open beneath Friday’s low (and, indeed, a high for the day no higher than Monday’s low). That would create an island reversal pattern, and a lovely one at that.