Hey Guys, still having some issues posts will be limited for a week or two until I get set back up again. Anyway I have a lot of info to show you in so little time. Overall not much has changed we got our last top at 930 right were we expected, head and shoulders pattern is still very much in play, we are right on the edge of breaking that neck line but nothing desicive yet. Remember we need a CLOSE below this 878 level to confirm this pattern. If we get a decisive break then look out below.
Here's the deal, see how we had 2 left shoulders form before we made the ultimate top(head) around 956. Now as of right now it is unclear if we may get one more bounce off the neckline to form a symmetrical head and shoulders with 2 left and right shoulders before the possible break down.
As you can see my annotation the "kiss of death", when the 20 day moving average crosses below the 50 day moving average. This is very bearish for the market and might be a telling sign, however check out my annotation at the bottom as the full stochastics has gotten a bullish cross signaling a possible short term bounce however should be short lived.
To trade this, any long position is very risky I don't see to much upside so the risk reward ratio would be poor. If you want to try to play the bounce should be only a day trade ONLY. Otherwise wait for higher prices to establish some nice short position. Down trend has been confirmed on all three time frames (short, intermediate, and long) so let's let the trend be our friend.
I have so much info I want to show you, hopefully I will be able to post some of it over the week. I have some simple strategy suggestions that can keep you on the right side of the market. Also some market internal charts that show some inside information.
Till then good luck trading!