BHP and RIO were down 5% intraday yesterday and made a massive bearish engulfing candle but today look set to gap up 5 to 10 %. The broader market made the same engulfing candle and today is set to gap up by close to 200 points!!
This could be a significant low but such wild moves make it difficult to get on board (or exit!) in either direction.
One thing I noticed is that the XJO picked a very tidy place to bottom yesterday, double bottom and 62 % retracement. If today closes up (which seems almost certain) there will also be some momentum divergence and McClellan Oscillator divergence adding weigh to the argument for a low.
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