SP500

Coming into the long weekend, there were signs of a possible recovery on the daily charts. On Thursday (9/1), we had a potential reversal candle followed by a gap-up on Friday (9/2). Friday's price action saw us closing this gap and pushing back towards the support line at 3921.05 on the daily chart. Also, the daily chart saw the RSI making a new low and the MACD continuing lower. Using the RSI Modified, we see it is approaching the pivot oversold line.

On the weekly chart, we see closing out a third black candle. I would hesitate to call the candles a three black crows pattern because the bodies do not contain the previous candle's close. Regardless, the warning on the three black crows remains- most of the bearish move might be exhausted.

With the daily closing near the RSI oversold pivot, the attempted reversal Thursday, and the price action on the weekly chart, I believe we might see another attempt at a recovery next week.

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