Had a discussion with someone this week about a pending sell off of equities, that low 3200 on SPX is support on what we could see on a candlestick chart - and its true and its obvious, maybe its too obvious.
So taking time out the equation and looking solely on the price action of a Renko chart you can see that all three Indexes have solid trendlines. The Russell has revisited this trendline the most yet now is the furthest from it.
I synced these charts starting April 3rd - and you can how much each of them moved since then.
As there was a mini selloff Friday (the opposite of last Friday) maybe we''ll return to the trendline. If that's the case Russell has the furthest to go and the Nasdaq the least.
November 9th all three indexes gave a overbought signal (red line), the RTY did not fall worth mentioning,the ES fell about 50 points and the NQ lost about 500 points.
Things are all askew because to the vaccine news - but maybe the shine is coming off that - CNBC will have a plausible story why the market falls but truth be told, the markets are just following the trend - up and down.
IF these trendlines get broken then something more marco is happening.
Downside to trendlines if it happens by next Friday - which is anyones guess:
RTY: -7.09%
ES: -4.88%
NQ: -1.98%