You can see where the support (blue trend line) broke down while a new down trending line of support (red line) was created.
Previous support line now acts as resistance. Failure to break back above the 2009 trend confirms the longest bull market in history has come to a close. Enter the bears.
I also see the left shoulder and head of a possible H&S formation. Perhaps we'll get news of a trade deal between the US and China, providing the catalyst needed to send prices higher, completing the right shoulder before said agreement falls apart or fails to materialize, sending prices down to 2470 and more likely, 2080 (.618)
Or any other number of possible catalyst.
A H&S pattern is not required to send price lower. We could just as easily bounce along the new RED support line down to 2470.
Previous support line now acts as resistance. Failure to break back above the 2009 trend confirms the longest bull market in history has come to a close. Enter the bears.
I also see the left shoulder and head of a possible H&S formation. Perhaps we'll get news of a trade deal between the US and China, providing the catalyst needed to send prices higher, completing the right shoulder before said agreement falls apart or fails to materialize, sending prices down to 2470 and more likely, 2080 (.618)
Or any other number of possible catalyst.
A H&S pattern is not required to send price lower. We could just as easily bounce along the new RED support line down to 2470.