Follow-Through For Now

While this pattern is better known as an intermediate-term pattern, the fact is, it works in any time frame. The handle tends to shake out weak hands, preparing for a rally above the lip of the cup. If the rally is accompanied by volume, it can be strong move.

On the daily candlestick chart, today's action creates a Hammer. This formation typically signifies the end of a downtrend, and a continuation to the upside tomorrow would signal a Haggerty 1-2-3 bottom.

We shall see.

Eddie