The snoozefest continued yesterday, with SPX eeking out another 2-pt gain — and still below Tuesday’s 1410 high.  That makes eight sessions in a row with pathetically low volume and daily range.  Something’s gotta give.

continued…

If the 1410 high holds, we can see some likely near-term downside targets suggested by the small harmonic grid.  The most likely one of any substance is the .618 which intersects with the lower channel bound at 1375 on Aug 22.  But, that’s pure speculation.

I’ll remain short unless we blow through the 1411 mark, at which point I’ll likely switch teams for a run up to 1422-1433.

The dollar is back-testing the falling wedge we’ve been watching.  If it’s able to hold to current values, the first stage of any advance should see a rise to flesh out a channel — the white trend line hanging out there by its lonesome.

Likewise, the EURUSD is back-testing the underbelly of it’s rising wedge.

I’ve theorized a best case scenario for the pair — a drop to form a channel and subsequent rise to complete a Gartley at 1.2552.  But, this would mean breaking the 1.24 resistance — a difficult feat under current circumstances.

UPDATE:  10:00 AM

Nice little Bat Pattern on the 15-min chart.   Could get things pointed in the other direction, though don’t expect too much on OPEX -1.

UPDATE:  11:25 AM

COMP just completed its Gartley…

NDX completed its Bat…

DJIA tagged its Fan Line from the 2007 top again and is still lurking about its Bat Pattern completion at the .886 without making a new high…

…and RUT completed its little Gartley and a trend line from its 847 high.  It’s worth noting that RUT is 5.2 away from completing a very large inverse H&S pattern that would be good for 100 points to the upside.  I can’t even begin to imagine that playing out, so I’m betting it won’t complete.

 

UPDATE:  2:15 PM

SPX broke out of the little ascending triangle it had formed over the past few days and is within .33 of completing a little Crab Pattern.  It has a head of steam on it and appears to be aching to test 1422 for a double top.

NYA is closing in on its own Bat/Gartley completion — joining all the other indices listed above.  This has the feel of a throw-over, short-covering melt-up — much like the move down from 1288 to 1266 a couple of months ago.  I’ll be very surprised if it exceeds 1422.

UPDATE:  2:45 PM

The Dow just completed its own Crab Pattern at 13,270 — completing the list of major indices that completed significant harmonic patterns today.

And, long bonds are testing an important support level — as seen on the daily chart for TLT below.

Note the age of the rising wedge…

NDX has passed its .886 by, and is acting much more like SPX at the moment.  At 2774, it’s only 21 below its previous high.

RUT, which needed to get to 814 to complete its IH&S pattern, just registered 813.57.  It’s close enough to be called a completed Bat Pattern — but not quite a completed IH&S.  We’ll see if it backs off to 808.60 by the close.

 

More after the close.