Yesterday, after the market closed, I was celebrating. Why? Yesterday’s price action was an obvious signal that demand had once again taken over the market. The pattern I was watching was a two day pattern called a “bullish engulfing.” This is a pattern that occurs when a market makes a sudden intraday shift that changes market control in favor of the bulls.
Here is the ETF for the Dow Jones Industrials. I used the ETF because the actual index does not allow for gaps during the market open. The actual bullish engulfing pattern is within the white circle.
Charts are viewable right here!
First one:
http://oi50.tinypic.com/o6bqix.jpg
Second one:
http://i50.tinypic.com/6r7h2u.png