fxtrends

fxtrends

Typically, elongated rising wedges ( like the one seen in the SPX500 right now), tend to resolve to the downside. Also, over the past few weeks, bulls have failed to reach the top end of this wedge. And, in the past 48 hours, the SPX500 is threatening to leave two major false - break patterns and a dragonfly doji pattern. These are characteristics of a either a...

fxtrends

Monday's dragon-fly doji at severely oversold levels suggests a basing phase could be underway. A confluence of two major Fib's also hint of possible accumulation. A clean break of .9740, however, would embolden bearish momentum, triggering an extension below .9700.

fxtrends

10's

fxtrends

Typically once 5-wave moves complete they tend to correct back into the previous 4th-wave. Look for the C-wave to finish in the 95.46 zone. Alternatively, a failure to clear the 94.12 (wave a) high would refocus the key 90 region.

fxtrends

2 pending bearish false-breaks (yellow arrows) look to be confirmed

fxtrends

A daily (bearish) false-break reversal still looks poised to test the pattern target in the 1973 region.

fxtrends

S&P 500 is now set to pullback. The 2 red arrows highlight rather large false breakouts (of previous swing highs), which are complimented by RSI divergence. Also, Friday's spinning top pattern is being confirmed with today's follow-through selling.