Failure to Launch

By -

I was concerned this morning about the /ES getting ready to push about twenty points higher based on its breakout pattern. The breakout was fulfilled (see green tint), but it has, over the past hour, completely rolled over. A hefty double-digit gain is now inching toward the flatline.

The key is whether or not we can take out the low at 1348 (circled). If we can, that sets aside the entire bullish setup and eliminates the recent series of higher lows. I'm still in "wait and see" mode myself, with the hope that a Euro catastrophe will finally do what needs to be done to push this completely overvalued market lower.