As shown by the chart, the market is not looking positive in my eyes. While we don't have a perfect descending triangle
, it is well formed enough to use as an indicator. Although it is possible we will have an upwards breakout due to positive news rushing in, I consider this unlikely for a couple reasons. The vast majority of news in the past week or so has already been positive and this bearish
formation was still able to come together. If anything, I feel the news has only contributed to keeping the bottom of the triangle from leveling. Also contributing to the trend is the upcoming deadline in China. While many are dismissing it as factored in, I hesitate to dismiss it. Many traders will be sleeping with one eye open hoping to get out at the first sign of a crash, making this drop seem even more likely.
Consider this prediction broken if we break 975 or if we see sideways action past the 25th