S&P futures came to within 20 points of the neckline of the H&S which nicely forecast December’s 300-pt plunge before finally taking a rest last night.
Yet, as the charts indicate, the latest drop has (so far) merely tested the bottom of a rising wedge. Should ES bounce from these levels, the upside case remains intact. Even a drop to the SMA10 would merely establish a less aggressive rising channel.It’s only when ES drops through its SMA10 that real trouble arises.
With CL and RB rolling over as expected and VIX backtesting the TL it just broke below, stocks are once again in a precarious position.
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