Picture perfect shark pattern here (complete w/ expected consolidation around the 50% retracement) about to resolve into a 5-0 pattern that starts the breakdown. No buyer interest above 280 for a week and a half now. Distribution and selling the rips are all the rage once more. I thought it would at least tease the 61.8% retrace of Monday's drop but it hasn't even come close... and for the first time in this rally we've got some bagholders that might be getting a lil antsy.
If that channel support breaks expect to see some heavy selling.
The second leg of the Monday selloff occurred when the Dow's channel support broke. DIA is one red candle away from its 21 day EMA turning its nose downwards which typically means the start of a downtrend. IWM is in the same boat.
And yet I still see bulls saying it'll go higher in the short term... though none are personally willing to buy here above 280. Seems they all prefer other bulls to fall on that hand grenade. Only 3 green candles in the last 9 sessions and yet we're somehow UP during that span. At some point pumping futures and recycling trade news will get old, if it hasn't already.
ETA: FYI for those that read Bulkowski's pattern site, his CPI indicator just flashed a sell signal for the first time since early December.
thepatternsite.com/Blog.html
If that channel support breaks expect to see some heavy selling.
The second leg of the Monday selloff occurred when the Dow's channel support broke. DIA is one red candle away from its 21 day EMA turning its nose downwards which typically means the start of a downtrend. IWM is in the same boat.
And yet I still see bulls saying it'll go higher in the short term... though none are personally willing to buy here above 280. Seems they all prefer other bulls to fall on that hand grenade. Only 3 green candles in the last 9 sessions and yet we're somehow UP during that span. At some point pumping futures and recycling trade news will get old, if it hasn't already.
ETA: FYI for those that read Bulkowski's pattern site, his CPI indicator just flashed a sell signal for the first time since early December.
thepatternsite.com/Blog.html