We’ve gone sideways for long enough now to reset things for a new low, should the markets choose (futures made a new low overnight, by the way). The channel has been violated, but these things are not sacrosanct. Waning upside momentum around the 10,250 level suggests we could be setting up for another decline.
Source: Prophet.net
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Here’s a close-up of today’s move, showing a contracting triangle that indicated stocks were going to break upwards, since the move out of a triangle is usually in the direction of the existing trend. Such triangles often precede the last move in a sequence, so I’m looking for exhaustion here.
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Of course, if stocks accelerate upwards from right here, all bets are off.