This is a follow-up from the Bounce Zone series of charts where I highlighted equity indices were at key support levels. After of a week oscillation, the $ESA and $NQA have formed a potential Gartley formation. What is a Gartley formation? A Gartley is a bullish reversal pattern which is found after severe declines, characterized by short-term double tops and...
$ESA broke down from a pennant formation yesterday which suggest a CD leg has commenced with a downside objective of 2700 which coincides with a Daily SSR support level. Check out my chart series named "Confluence of Coincidences" which was published a few weeks ago.
With the $ES and $NQ rebounding off the 200-dma and at the 61.8% retracement level, the big question is this another BTFD moment or part of a bigger move down? The $RTY might provide a clue here with a breakdown from a wedge and a retest of the wedge lower boundary which is also marked by a SSR resistance. Odds are for a CD leg down for the Russell 2K and...