tuesday and wednesday nights, page-42

spi is close enough to spit at being an outside day. One of the most powerful chart reversal patterns in the markets is the outside day. The principle of an outside day reversal is that the market's highs and lows are "outside" the highs and lows from the previous bar. The high of the current bar is greater than the previous high, while the low is under the prior low. The outside day is called bullish is the current bar's close is higher than the prior bar's close, while the outside day is bearish is the close is less than yesterday's close. Candlestick chart watchers call these situations "engulfing patterns", as the outside bar consumes all of the prior bar's price action and more on each side of the previous highs and lows.

At the moment the spi is below the close of the previous day and probably unlikely to surpass it (at 6237). The trading signal then,fwiw, is to short at the highest level possible without the close exceeding 6237. Its a bit tough considering the candle cannot complete until tomorrow morning!