I think a break of the purple dotted trendline (July-October Low Trendline) will be very bad for the bulls. Some are calling this a triple top as well. If this is the case, the expected drop should be somewhere near 1054, which should be below this trendline.
Happy Thanksgiving to all. I didn't want to post anything for the rest of this week since I am enjoying my time with my family.
However, I could not resist posting my latest ES chart since the rest of the world has chosen to sell-off as a result of Dubai's issues
I made a slight change on the labeling since Monday's post but maintain that a Head and Shoulders formation is a valid one. As a result of the sell off, the neckline has been broken.
Now the question is will there be a follow through or will this just be a false break just like the previous H&S formation. Is this a wave iii or a (c)?
I think it is safe to say that we have at minimum a short term trend change on our hands. The level I'll be watching on Friday for SPX is 1070 (SPX). A break below will confirm the trend change.
Thanks for sharing! Right now it looks like the S&P e-minis are becktesting 1082.
ReplyDeleteCould be an interesting day! Especially since I held such a short position at the close on Wednesday.
Enjoy the time with the family. That is the reason that I am posting so early myself.
By the way, Merry Christmas a little early!
GL msswamprat! Merry Christmas to you too:)
ReplyDeleteThanks! It turned out to be a good day, but not as good as I had hoped. Guess we will see what next week brings.
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