The DX falling wedge is even better defined. Will it finally break out today, with an equities sell-off? Or, will it fail again and we get our bump up to 1411? Or, will it be another endless day of a mind-numbing, low-volume test-pattern of a market?
The megaphone on the 15-minute chart looks tired. We completed the Bat Pattern at the .886 Fib of 1404.64 on Tuesday, tagged one of our two Fan Lines from 2007 on Wednesday, and have gone nowhere since then.
As I wrote last night, VIX looks ready to pop a bit. Breaking the megaphone’s lower bound on SPX would be a great start.
UPDATE: 10:50 AM
The megaphone broke, and a little channel is forming on the back test. In a market like this, I’m not going to assume the back test will lead to immediately lower prices.
VIX’s falling wedge is looking very pregnant. Note what happened the last time one of these broke out.