Watch This Potential Warning

As you know I’ve been leaning a bit bearish. I am more short than long right here, so I want you to look at two charts that “may” help us out going forward.

Here is a daily chart of the SPX. As you can see we may be forming the right shoulder of  bearish head and shoulder pattern.

spx daily

Here is the hourly chart of the SPX

spx hourly

These patterns don’t always validate, BUT you need to respect the pattern right now, especially if you are putting on new long positions.

See you in the trading room.

 

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