Just have a few minutes between meetings.  The decision to short at 1363 is finally paying off nicely (it feels longer than two sessions ago.)  Remember, we’re searching for a Point C in a counter-trend retracement, so the range could be anywhere from .236 – .886 of the previous move, so this could land anywhere between 1341 and 1277.

We’ll look at the charts and try and narrow it down a little.

continued…

The daily RSI broke from the rising wedge we examined yesterday.

If it broadens into the channel I originally anticipated, we’re looking at a more sizable pullback.  But, it’s not required by convention.  Nor is the typical rising wedge pullback to the inception point.  But, this is good confirmation of the move — particularly if RSI closes back below the dashed purple trend line that would have held if not for the rumor-ramp the other day.

The obvious harmonic target is our original forecast target of 1326.19 (the larger pattern’s .382).  And, of course, we shouldn’t forget about the neckline of the previous IHS pattern at 1335 or so.

VIX shows more room to run on the upside.  We put in a Point B very close to the .786 of the larger red pattern this morning.

The larger implications are that there’s a Butterfly pattern in our future; and Butterflies complete at the 1.272 extension.  But, we’ll save that for another time.  For now, I’d be looking at how VIX reacts if/when it reaches the low 19s.  There’s the previous H&S neckline at 19.44 and the .618 of the larger (purple) pattern at 19.03.

The dollar has reached a natural stopping point in the H&S pattern we charted a couple weeks ago.  The neckline shifted slightly from the channel lines I’d drawn; if the new shoulder line is parallel to the new neckline, it would run out of steam any minute.

There’s also an important TL (yellow, dashed) up ahead at 82.4 or so, and of course the monster channel line at 82.7ish (solid purple, below.)

I’ll post more next break I get.  Good luck to all.

UPDATE:  12:50 PM

Approaching the previous neckline at 1335, one of the two “obvious” targets mentioned above.