While there are countless possibilities, two stand out: (1) a simple failure at the 50 DMA (2060) or at the channel line at 2065 ish and a resumption of the trend down or (2) the development of a .
The , though, would require breaking through the upper channel line (also part of a descending ) and the right shoulder at 2084 ish of the widely discussed pattern currently in place.
In the event this takes place, the channel line would likely serve as resistance in any move down. Thus, in my eyes the upper channel line will play a large role in determining our fate.
In the event it is breached, the thought of becoming in a market that has endured four or five consecutive quarters of year over year declines in churns my stomach.
The case for the or more is made by Tom McClellan here: https://www.mcoscillator.com/learning_center/weekly_chart/strong_summation_index_promises_higher_highs/
However, the higher high wherever it is could also simply be a “bow off” top and we have unfavorable beginning in June.
Thanks for reading and comments are welcome.