There's a clear H&S forming on the 30min and I'll be building up shorts in the sell zone as I see signs of rejection and volume spikes on the 5 min. Retail shorts are now stopped out and some have even gone long on the breakout. Big boys are now fully loaded with shorts and are ready to take it down into liquidity next week!
Everyone is bullish because of the hammer on the daily chart, if so then why was the next day a down bar? They were selling at the top after squeezing the shorts and now prices will drop because all the sellers are stopped out or they went long at the top. The EU etf FXE was a "Bullish Engulfing Pattern" on high volume on the daily so most traders were bullish,...
In 2008, the IWM completed a head and shoulders top two months before the SPY and DIA did, effectively predicting the coming crash in the SPY. Is the same happening today?
Daily chart showing the formation in the S&P500 futures leading up to the crash of 1987 on Monday, October 19. This is a reference chart for all to remember and take note of. This pattern has revealed itself in many other markets, many other times and is a useful reference.
This current bubble has overextended itself to ridiculous levels. This thing will come down, hard. Look for double tops and bearish chart patterns coming in the next weeks, and months. Tread carefully. To further this situation, gold and silver are sitting like a coiled spring, ready to pounce on this move. Check out my other idea here.