I am stuck by this consistency among the indexes: Tuesday was a hammer candlestick in every case (or a hanging man, if you prefer). The reason? It’s anyone’s guess, but my theory is that traders know the market is historically overvalued and it SHOULD go lower (hence the weakness midday) but they reflexively bid prices up based on any sniff of weakness. Still, this is the first decent selling we’ve seen since March 30th, and I wouldn’t be surprised to find out something bigger has just started.
