COMP’s breakdown caught a lot of people by surprise (though thankfully, not everybody.) Likewise, its bounce has turned more than a few heads.  As it approaches a backtest of its channel line and SMA200, what can we expect? And what does it mean for the broader market?

continued for members…

The bigger picture shows the potential for the Butterfly Pattern 1.272 extension target at 11421.

Its RSI is threatening to break out, with the implication being that a close well above yesterday’s highs would represent a breakout. A reversal of the opening ramp would be quite bearish.The same situation exists for ES and SPX on both the 60-min and daily charts…

…as well as with XLK, the tech ETF. Much will obviously depend on the outcome of today’s OPEC meeting. CL is again hinting at a top…

…while NG is on a tear.USDJPY is hanging by a thread. And EURUSD has now fully backtested that TL we mentioned yesterday.DXY is once again testing the red channel bottom. While BTC has reversed at the channel top and is now pressuring its SMA10.

This post is labeled COMP’s Moment of Truth. But, the reality is that most everything looks vulnerable to a reversal at this time, with Friday or Monday shaping up as a potentially ugly day unless we get a lot more upside right now.

UPDATE:  12:40 PM

FWIW, DJI just reached its .618 Fib, which is always a strong suspect for a reversal.

  UPDATE: EOD

Everything has pushed right up to the cliff’s edge except for BTC.  As of this moment, it has fallen off the cliff and is doing it’s best Coyote running in mid-air imitation.

Oops…