This Week’s Price Action
- H&S see bear trap.
- Bearish patterns in Russell and NASDAQ approach target acquisitions
Russell see bea trap.
DJIA – Still below it’s H&S top, but seeing a reversal pattern form which could trigger a huge bear trap.
COMPQX – Huge bear trap, now we would like to see a cup/handle form to take it higher.
The Bottom Line:
Last week we saw a Monday gap down quickly bought forcing a bear trap basically across the board. This week I will be watching the DJIA closely to see if the bear trap can officially trigger or if we see failure of the bullish pattern. What happens there is the cleanest market read right now, so it will likely tell the story. We certainly want to take note of the fact that the bears have struggled to see any push lower as the bulls continue to buy every minor dip. This is significant as it tells us the market maintains it’s underlying bid and we are likely to see that 2460 target get acquired at some point.
IBB -> This will be interesting to watch here. A minor H&S forming at top of range, but failure could trigger a larger double bottom cup/handle.
IYT -> Saw an undercut type trade here on the way to 176 target. Watch for a break of the immediate term down trend for a trade.
SLV -> Watch to see if this mini inverse H&S can trigger.