The Predictive Pover of haDelta: SPY
Today we have another example of haDelta’s predictive power: SPY.
The heikin-ashi chart is bullish since the beginning of October with a doji-like reversal modified candle today.
It suggests a reversal of the uptrend and nothing more. On the other hand, haDelta in the lower pane provides
more clues than the visual HA chart. It’s worth noting that haDelta played with its historical resistance days before today.
Since the indicator sits on support, caution is advised (see the two previous similar situations in August and September).
Conclusion: There were signs of weakness despite the advance of the markets. The doji-like candle suggests a reversal. A confirmation is required (the break of haDelta support).