Hi Shoppers,

Believe it or not, I’m seeing bullish signals.

Olé!

Yesterday’s action in the major indexes has created possible change-in-trend candle formations.

Could we bounce from here?

I say yes.

Of course we need confirmation today  …meaning we need to see some followthrough to the upside.

Check out the hammer formed in the Emini S&P 500 Futures (Ticker: ES):

A hammer is found at the bottom of a downtrend and signals a possible change in the trend.

ES has been in a downtrend since Feb. 2.

Read on for signals in the SPX, QQQ and IWM.

Candlelight
The S&P 500 Index (Ticker: SPX) saw a bullish engulfing candle created yesterday:

A bullish engulfing candle is found at the bottom of a downtrend and completely engulfs the real body or colored part of the previous candle.

It is a signal that the trend may be ready to reverse.

Yesterday’s candle in the Invesco QQQ Trust (Ticker: QQQ) is also bullish engulfing:

The candle formed in the iShares Russell 2000 ETF (Ticker: IWM) may not be a particular signaling candle … but it is bullish that it closed over that support/resistance line:

As I said, we need followthrough to the upside today for these change in trend candles to pan out – so keep an eye out!

And drop your questions or comments below.

Thanks for Reading … See You Next Tuesday,

Licia Leslie