The SPX rising wedge broke down slightly yesterday and then followed through hard this morning. I have a minimum target at the 38.2% fib retracement in the 2280 area. However I would normally expect to see a topping pattern at a high like this and while there is some potential for an H&S to form, I’d note that about 70% of SPX significant highs are made with double tops, so we may well still see an ATH retest before the main decline begins. If we are to just see a move to 2280, and that is going to be set up with a double top, then the obvious place to see the rally to the second high start would be in the 2340-50 area, and I have drawn in a couple of possible bull flag support trendline options for that. The first one has been tested at the current low today. The hourly RSI 14 sell signal has made target but no positive divergence yet. SPX 60min chart:
It’s been an, ummm, busy morning. This is the most profitable day I’ve had in a LOOOOOOOOOOONG time, and every single one of my 71 short positions (even the ones I opened today) are in the green.
Every. Single One.
I’ve got to update my stops, but in the meantime, here’s NVidia, which I just shorted today. It covered its gap, and it’s insanely overvalued. See ya later, Slopers.
A few weeks ago, one of my kids convinced me to substantially upgrade our drone. I’m glad I did, because this new one is simply amazing. We had some fun this weekend on the Pacific Coast, and here’s one clip that has some pretty terrific footage: