I mentioned the somewhat bearish opening setup on SPX/ES yesterday morning and that’s still looking somewhat bearish. On the bear side on SPX, though the hourly RSI 5 sell signal has now reached target, a small double top has broken down with a target in the 2276/7 area and that could be the target today. On the bull side though …….
Stan & I are starting work on the book we are writing and Stan and I both have a few pattern setups to name as we write them up for the book. One of those for me is double tops and H&S reversal patterns that break support and then fail into trend continuation. These tend to fail hard into a high probability target at the top of the failed pattern (at highs, vice-versa at lows). These happen a lot and longer term readers will recall me mentioning these many times over the last few years. My working title for these as continuation patterns is a ‘Jack In The Box’ Continuation. We may well have one of those here and, if so, that would set up the full all time high retest that we are expecting this week.