As of 1:00 pm ET Wednesday, April 4, the daily Heikin Ashi candles on the SPX haven't flipped from red to green, yet.
Nor have the DJIA, NDX, COMPQ, RUT or OEX HA candles.
Nor have the FAANGs HA candles.
However, Tuesday and Wednesday's HA candles on the 10-year T-Notes have (so far). Are we looking at a potential reverse head-and-shoulders formation in the making?
If we see a neckline breakout soon that holds (and thwarts that scenario), further equity weakness may continue (watch for the momentum indicator to remain above zero).
Otherwise, such a formation may develop over the next couple of weeks with equities gaining some strength, albeit on elevated volatile price swings. But first, we'd need to see a green HA reversal candle form and hold on SPX and the other major indices.
