Short, my friends.
UPDATE: 9:34 AM
We’re getting a bounce here at the former 1687.18 high, so I’ll play the long side with tight stops (1686.75ish.) I don’t necessarily expect a breakout, but it’s the logical play.
The USDJPY has reached the purple channel midline as we discussed and should get a bounce here at 97.62. Though a drop through it would also drop the pair from the white channel, which would target the yellow midline and H&S neckline at below 95.
SPX just stopped out at 1686.75, back to short with target of 1680-1683 and stops at 1688ish.
Bears are chomping at the bit, and bulls are likely thinking IH&S — the theme behind the bullish scenario on the above chart (last Thursday’s forecast shown in purple.)
UPDATE: 11:20 AM
SPX has reached our initial target area (1680-1683.). The bottom of the red channel is just below at 1678-1679, but an IH&S from here would be well formed. Watch your stops.
Should get a bounce here at 1682 — the .618 of 1676 to 1691. Normal bounce should be to the last channel line at 1685ish. But, keep your eyes open for any higher.
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