I've been banging the bull drum hard this week, but looking at the charts this morning it seems that we are likely to see a big reversal today (Editor's note – I agree!). Hopefully this post will be up before my charts are overtaken by events too much. First ES where the main picture is a rising wedge within a larger falling wedge. The smaller rising wedge is breaking down and the next obvious target is the lower falling wedge trendline in the 1313 area:
Looking closer at the chart you can see that the rising wedge has broken down, and has broken down further since:
On the NQ chart there's a nice looking IHS but you can see we never made the downside target on the big broadening ascending wedge. It seems we may be returning to hit it in the 2310-2315 area:
Looking more closely at the short term setup on NQ you can say that the IHS is fully formed and looks pretty good, but the support trendline was breaking at the time I did the chart and has since broken with confidence:
On TF there's a lower quality IHS, and another decent support trendline that has now also broken:
There are a lot of wedges in play today and here is another on the EURUSD 6omin chart. Since I capped this chart this has also broken down with confidence:
Copper is standing out from the crowd this morning. There's a rising wedge there too, but it hasn't broken support yet. If it reaches 405 then that will be the break down:
Silver's a trickier play here, but if we see breaks down everywhere else then I'd expect silver to fall in sympathy. There is a possible triangle forming on the silver chart and support would be in the 33.6 area:
Eight charts this morning which is a lot, but hard to capture the picture with less this morning. This is a very bearish looking setup and we could fall hard today and extend into (the now generally bearish) Monday. I would caution longs to be careful unless main declining resistance on ES can be broken, which looks a long shot in the short term. Opex Friday today so the road could get bumpy. Happy hunting everybody 🙂
