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It has been all downhill since I noticed the double top yesterday. Dramatic turn of events. But the ES S&P futilitures had reached their upper measured move target from the reverse head and shoulders breakout, of 4350. At that point, the trading algos all decide that they’d go no further, triggering their Sell Mortimer algos.
Now we’re at the point at 4 AM in NY that the price could drop back below the upper line of the big megaphone pattern. If that’s not quickly reversed, it would be quite a significant sell signal. Maybe even something longer than two days in magnitude.
Here’s a look at the two hour bars for perspective. There’s a cluster of trendlines at 4305-4310 that looks critical. If they don’t generate a bounce, this could get interesting. One way or another, it looks as though New York traders will awaken to a nasty surprise.
Zooming in on the 60 minute bars, we see that spport has held for now, with the futures bouncing from one point higher than Tuesday’s low. But there are no indicators in position for buy signals yet. And the 2-3 day cycle projection says that they’re going to 4296.
No sooner did I finish typing that than they broke the low.
And gaining momentum. 5 day cycle projection 4288.
It will be 100 degrees here in beautiful Bratislava today. If I survive, I head for Krakow tomorrow morning. That’s supposedly one of the most beautiful cities in Europe. Forecast calls for rainy and cool.