Market could be at the brink of a short term reversal. VIX has risen significantly signaling volatile days ahead. With last 3 days price action, we have an island reversal in ES leaving behind 2 gaps, expect the market to drop tomorrow (watch for unemployment report at 8.30 AM EST). A bearish head and shoulder pattern has formed on ES and if the neck line is broken (daily close below 1536) we are looking the market to go as low as 1480.
Island reversal with 2 gaps
Head and Shoulder – potential reversal to 1480 if neck line broken.
Yes, I agree, good report. But I feel atleast one more week of consolidation is needed to go down.. In other words, the right shoulder is short. It might need to spent few days before breaking down.
Thank you. something I am have learned today from your report. Not one eye can catch all the info. Sharing some info will be helpful like this.
If the market charges above 1581, pattern will be broken and we can expect some more uptrend before the pullback. Given the earnings are not spectacular, I doubt we will have another rally before a reasonable pullback. That being said I try to keep an open mind and look at the market as it evolves 😉