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Selmax

The pattern you show, I talked about yesterday.

However it doesn't go up anymore than it goes down.

In bear moves you get a day and a half up and then within a day or two are at new lows.

In fact what was a bit disconcerting was that the two previous times it had gone up and the market likes you to see the obvious to suck you in. Now you have highlighted it, what's the bet next time it doesn't work.

I think the more positive indication was the break of the downtrend.

I agree this should be a nice sell near or at the open. Short term momentum overbought, dynamics reached and big gap to boot.

So the collapse looks ruled out and we are still following the fractal from the weekly chart of 2007/9. That too will fail at some stage but if it continues for now then it calls for sideways action for a week or so and then we head lower.

The problem for the downside is that we have pretty much run out of downside pull. Presidential and decennial patterns are, or about to, turn up into Aug/Sep.