On the ES chart a double-top has broken down with a target in the 1823 area, and I can't see any particular reason to think that target won't be hit except ........ that a smaller double-bottom has formed which would target the 1855.75 area on a break over 1845.75. Only one of these patterns should play out and I'm leaning strongly towards the bear option, though obviously I'll be watching strong resistance in the 1845/6 area with interest. ES 60min chart:
For those of you who may have missed my weekend post you can see that here, and the bottom line is that I have now identified the current primary bull market pattern with high degree of confidence, and that is a rising channel with channel resistance currently in the 1920-30 , and rising at about 25 points per month. SPX daily primary patterns chart:
Primary short term support on SPX is still at the 50 hour MA, which closed on Friday at 1848. A clear break below that, which we may well see at the open, would back up the double-top scenario here, and the obvious initial SPX downside target would be the possible H&S neckline at 1824.
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