While, I can’t say tomorrow the market is going to go down, I have some speculation that it may, from a technical trading point of view.
1 Month Chart – So basically here what we are looking at is a hammer candle. Usually it is indicative of a reversal, towards the top of a rally it suggests that we are almost at the peak.
1 Week Chart – The least convincing of the three to me however, after looking towards the more recent weeks, it looks like we almost have a bullish rising three going, a better example can be found here. It also looks like we broke a bit of resistance, but aren’t home free yet.
1 Day Chart – The one day chart again has the hammer, suggesting that the end to the rally is near, this also happened to be the point before a resistance point was broken.
After looking at all of this, I believe that the market may pull back a bit, we have had 8 months of gains, since the market bottomed out this has been our best streak so far. While I believe we have broken some resistance in the 1w chart, I am not convinced we are home free for another month of a gains. There are technical indicators that suggest that the market will go down, but there has been a decent amount of good news to go around. Let’s see what happens tomorrow :)!