Equity markets ignored the sell signals yesterday and kept on going up. As we open this morning markets are now at a significant short term inflection point on ES, TF and NQ. The bear option is that all three are overthrowing rising wedges, which would then break down and retrace. That retrace would tell us a lot about the significance of last Thursday’s low.
The bullish option is that all three are in rising channels, and that the obvious next target on SPX would be at a retest of the last rally high at 1947. We should see which way that’s going to go this morning. I’m leaning towards the short option but if SPX can get back over 1920, then the bulls have likely won the inflection point.