Quick update on ES, which saw an interesting turn of events today…

We had a perfectly formed H&S Pattern (yellow) that didn’t work out, and a skewed, lop-sided one (red) that did.  Why?  The yellow one would have stopped ES shy of 2000, while the red one not included 2000 — it also provided a great head fake for those who got bullish at SPX 2000.  The purple channel is tilting within the rising white channel — whose midline we just tagged upon completion of the Bat Pattern.

As is often the case, USDJPY led the way most of the day.  A further decline to the H&S target of 1992 is possible, so watch out for the potential head fake down to the yellow neckline.

Also, note that we remain below the IH&S neckline (dashed, red) sloping upward through the chart.