So big earnings beat, price is going to be complete the pullback and then major profit taking will ensue.
That big pink line is the former resistance turned support of the multiyear megaphone pattern.
Here is a zoom in of the 4 hr
Here is a zoom in of the 12 hr (for clarity)
Dollar suppression mechanism is no longer working to spur growth in equities.
Asymptote reached, diminishing results in equity push on every DXY suppression.
Note - I messed up the direction of the % gain on the NQ, just ignore the minus sign in front.
This is the same rising wedge setup that got broken to the upside (wrongly) back days before the JUN 11 market drop.
JUN 9 was the last FOMC, they are setting up the exact same play again (look at the greyed out rising wedge around the 3rd red circle).
Fake rising wedge upside break, then dump. Wish I had seen this sooner.
3210 has to break first (this is 3 months support)
3190 has to go next (this is the price level that has been defended ever since we gapped over it due to the fake vaccine presser on Jul 14 at 5 pm)
3150 is next and is a very strong support because many supports coincide there
- resistance break out turned support from February highs
- bisecting line from 2018...
It's clear, central banks are here protecting the 3190 level, desperately suppressing DXY, this time the BoJ took the baton over from the ECB to suppress DXY via UJ pump.
The effect of DXY suppression = equities support mechanism is diminishing, marginal impact from continued suppression is now occuring.
Someone has to force their hand lower.
A break of the 2990-3020 confluence of supports leads us immediately lower to 2930, the 0.618 fib off the Feb ATH to March lows.
That is going to be a 70 point run without any heat, so just fade any rally attempt on the way from 2990 to 2930. We'll see from there where we go - I think lower still, the target would be 2840 (follow the blue circles).