Island Reversal Paradox - Bullish!

19 Jun 2020

We saw an island reversal pattern on the SPX recently. Traditionally, as the name suggests, this pattern suggests a reversal of the recent trend. However, looking back at a history of prior island reversals, I found that during prior occurrences, there was a better than even chance of being higher at most time points in the medium term 15-90 days. So I still think that we are headed higher and should be able to close the gaps in the island and exceed them soon.