Intraday Reversals: A Powerful Signal
February 10th price action points to sell-off Friday.
Today we saw some very bearish signals. The main one I cover in this post is what I refer as an “intraday reversal.” Long story short - an intraday reversal has a very powerful psychological effect on market participants.
What is an intraday reversal?
An intraday reversal is when the stocks dramatically reverse direction in the middle of the day. The emotion of the day will be exuberant or sad, only to turn in the total opposite direction by the close. Today we saw that in the market; stocks were up big, and closed negative.
Here is why that matters.