Down thrust in the S&P 500 today

Down thrusts, when the price rebounds at the end of the day from a big loss, is very bullish. This is because demand overcomes selling pressure. There has to be a lot more buying than selling to first stop the selling and then push the price back up. Today’s down thrust took the price below the bullish trend line. But the close was well above it. Follow up to this is very important, as it is for any trading signal. Tomorrow will tell the tale.

sp500

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