Volume is also decreasing, the rally was probably mostly due to shorts covering and a big technical bounce (retracement + monthly diagonal support). We shall see.
We shall see. We reached overextended levels in Europe and 50% retracement in the US.
Testing
We shall see.
Multi-confirmation is required.
European markets are in another cycle compared to the US. A true pullback is getting more and more possible in a few European markets in spite of what's currentky going on in my opinion. It is possible that January becomes bullish before the bigger picture (potential bearish 2019 trend) takes over. Of course, I could be wrong and the markets could well collapse...
By then, there could be some sharp countertrend rallies. More analyses and price discoveries will have to be made as the tape unrolls.
We shall see. The market conditions may change a bit after the FOMC from this coming Wednesday.
We shall see what the markets will declare
Xmas Rally finally on? Or Shorting the pullback? Let the US decide
Important levels are on the chart
I will try to find extra cluster of evidences. However emember that 4630-4688 could perhaps somehow block unless these levels are destroyed with high momentum.
Potential wedge know, aiming for the gap at 4630.
This is an alternative scenario.
This would explain most major moves. Perform similar analysis for your lower targets. Pay attention to those price patterns (353 points).
I need more confirmation before I know for sure we are entering into my 3rd proprietary cycle. This could lead to a huge downturn to 4200-4250 very quickly.