Charts I’m Watching: Aug 12, 2013

The eminis are flirting with danger this morning, having ducked below a key channel midline (dashed, purple) but bouncing off a smaller channel bottom and another channel midline (dashed, white) near a .786 (1674.15) for a Gartley Pattern completion.

The dollar is threatening to break out of the falling wedge….

And, the SPX is set to tag the neckline of the yellow H&S Pattern again.  Holding above 1686 will be key.

I’ll play the downside on the opening with an eye towards the red .886 at 1679.86 — our target from last week.

UPDATE:  9:35 AM

We got a bounce at the pale blue channel midline, but I suspect it’s just to back test the neckline and that 1680 is still on the table.

The danger for bears is a dip to tag the .886 and complete the H&S Patterns, then a rebound back above the neckline to invalidate the patterns.

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