See first: The Case for a Market Top: SPX 5,000. - by HoleyProfit (substack.com)
Comparing Nasdaq to Previous Spike Out Highs. (substack.com)
The Giant Harmonics Are Filling - by HoleyProfit (substack.com)
Our big requirement for the first phase of a bear signal was trading over the resistance levels being sharply rejected. Yesterday one big bear candle took out four bullish candles. This certainly qualifies as a strong rejection. The low of this came right on the support level.
At this point we either have big bear trap or we’re inside of a correction that will set up a bigger drop. For the conditions laid out in the rejection thesis SPX needs to close the month red. It’s currently close to 150 points above where the month opened. Not only would we have to reject that, but we’d have to sell more.
Let’s look at the bearish continuation patterns and where they’d fail and indicate a pivot to bull.
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