Dow Top Formation in the Making, Part 2

Follow up on the previous analysis. I did a few updates in my public channel and will continue here as well. It looks like an decisive moment here today, could give a premature answer to what the weekly close will be. In the middle we can see that trend line broke, but we didn't drop or rally. Now it seems we are moving inside of that blue channel, same thing there as well. Europe is about to close in 10 min and my guess is that the market will then make it's move.

Think if the 1h or 2h candle is able to close above that trend line on the left, it will prob tell us what the rest of the day will happen. Think if it goes above that resistance, we might go up more even despite all fundamentals.

But if we do drop, it could get very ugly because we are in the middle of a right shoulder here of that H&S you can see on the left. Think a touch of 23.400/300, will prob mean the rally is over already.

On the right we can see the weekly chart, which is probably the key factor here. Think if the candle closes in the red, next week will be bearish. If we close in the green, think the market remains in full control and we could even go higher. Which would mean that the Nasdaq might be headed towards a new ATH, isn't life just great :)

Just added those line in the middle, looks like a real triangle formed the past 2/3 hours.


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Previous analysis:

Comment:

So it broke up, closed above that resistance, but now its crawling back. Now this could still be a retest, but usually the slow ones can be dangerous. Think if it drops below 23950ish, it could be a false breakout and we might get a counter move to the downside again