This really is one of the most nicely formed trendline highs on SPX/ES here that I’ve seen in a while and, so far at least, trendline resistance is holding like a champ. As long as that remains the case we should either be starting the first swing down now or, if the weekly pivot on ES at 2879.50 can’t be broken and converted to resistance on this test, we would likely need one more high retest to complete a slightly larger double top than the one that has already formed and broken down on both SPX and ES.
The short term setup here is a double top that might be a Janus bull flag. That’s a pattern of mine and I haven’t yet found time to write a definition page with examples but the short version is that a double top has formed and broken down slightly. At this stage SPX either heads to the double top target, or rejects back into a full high retest. One of those two scenarios should be next. I talked about the setup here and support levels in my premarket video this morning.
Having said that, I’d like to reflect on the full beauty of the trendline setup here. The strongest setups are a match on both SPX and ES and that is most definitely the case here. On ES the main rising wedge from the December low has overthrown slightly at this high. Wedge support is currently in the 2840 area. ES Jun daily chart:
The smaller wedge from the March low saw a perfect hit of wedge resistance at the high. Wedge support is now also in the 2840 area. ES Jun 60min chart:
On the rising wedge from the December low on SPX there was a perfect hit of wedge resistance at this high. Wedge support is now in the 2850 area. SPX 60min chart
On the smaller wedge from the March low there was also a perfect hit of wedge resistance at the high. Wedge support is now in the 2835 area. SPX 15min chart:
All these rising wedge support trendlines are currently in the 2835-45 SPX area, and will need to be broken to open the downside.
Stan and I were planning to do a free public webinar of Big Five and Sectors (AAPL, AMZN, FB, GOOG, NFLX, TSLA + six sector indices) after the close on Thursday but my internet connection where I will be on Thursday night might not be good enough so we have delayed the webinar until Thursday 18th April. If you’d like to see that you can register for it on our April Free Webinars page. The connection will definitely be good enough to write a post, so I’m planning the next post on on Friday.