There’s much more potential downside ahead — if it’s allowed to play out [see: Are Bears Doomed?]
The e-minis have completed a H&S Pattern that targets 1806 if it’s allowed to play out. Remember, this is the right shoulder of the larger H&S that completes at 1823 or so. The Flag Pattern indicates 1821-1823.
USDJPY has recovered yesterday’s dip to the purple .618, but is running into channel resistance.
The 10-yr bond, another of our three signals of a major top, continues to rally. Though, it’s approaching yet again that channel midline that has proven so formidable in the past.
SPX would benefit from a tag on the .886 (1844), after which we should get a bounce. But, with all the H&S Patterns in play, it’s do or die time for the bulls.
A reminder, I’m traveling today and tomorrow, so additional posts will be spotty at best.
GLTA.