Bulls had an ok day yesterday, but they’re looking tired here, and this morning has seen the rising wedge trendlines break on both ES and SPX. There is a small double top on SPX targeting 2149 on a break below 2159, and I’m looking for a larger topping pattern to form, so I’m going to be watching the possible H&S neckline in the 2146 area. SPX 60min chart:
Until there is a clear topping pattern the high on SPX may still be retested and exceeded, but SPX should now be in a short term topping process for a decent retracement before most likely going higher. Ideally the retracement target would be a retest of the daily middle band just under 2100, and that’s currently a good match with a 38.2% fib retracement of this move up from 1991.
I’m going to be holiday from Thursday 21st July through Friday 29th July. I’ll get a couple of posts out over the period but my internet access is likely to be patchy. Everyone have a great weekend 🙂
