Any reprieve from the selling pressure is likely to be a temporary reaction to short term oversold lows of oscillators. Quarterly momentum is falling; directional movement indicators are unlikely to give hope. ADX is rising and the DIs are now negatively placed.
Selling pressure continued through the week of July 3-7 unabated. However, unlike the last week of June which were dotted by black candles with shaven tops and bottoms, and a surge in volume, the sessions on July 7 ended with a pattern resembling a dragonfly. This is a small body near the top of a long shadow.
Dragonfly patterns may temporarily stymie a decline if they look strong. At present, volume accompanying the black candles lower remains relatively high.
