The market failed the first test, the smaller Head & Shoulder Pattern at 6800 that pointed to 6535. Now, it’s getting a shot at the larger one that points much lower.
The key will be whether it can hold 6700ish.
continued for members...
If you’re a trader, working for The Powers That Be, you really, really want to avoid ES breaking below the red neckline because the H&S pattern targets 6345ish (but probably 6314 since that’s the old high that could use a backtest.)
VIX and VX are not helping the bulls at all.
Currencies are still undecided, with USDJPY backing off its breakout and EURUSD at a crucial level of resistance.
CL and RB remain elevated…
…but, as expected, flow out of equities is helping drive rates lower.
stay tuned…