Outside Day

Out in the distance
I could hear some people laughing
I felt my heart beat back
A weekend's worth of sadness
--Til Tuesday

In the old days, when technical patterns seemed to matter, an outside day to the downside in the major indexes like we had yesterday would be viewed with some significance An outside down day occurs when the range of a day that closes on the lows exceeds the previous day's range that closed on its highs.

Outside days are often deemed particularly significant when they occur in breakouts after extended rallies similar to what we've recently experienced. In such cases, they are sometimes referred to as 'island reversals.'

The interpretation is that optimism is out of gas, as a desperate push higher has failed, leaving traders who went long in the last couple of days upside down and prone to question their motives.

Whether any of this 'comes true' this time is anyone's guess.

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