SPX threatening to Dump Overnight
The S&P500 is consolidating in a diamond pattern, and there's a decent chance 
SPX500USD futures will pull us down lower during the Globex session. The NY close demonstrated selling pressure in the upper yellow zone on the chart; an area where sellers have profited from selling before. The VZO-PZO below the chart shows falling back into the diamond will likely cause a fail of the bullish trendline on the oscillator, and the TMF above is signaling lower with bearish divergence. If we continue to trade lower on tariff jitters, there's good reason to think the NY open will involve anther test of the vitally important 2700 area (lower yellow zone) on SPX. I expect an initial bounce on high volume, then a a back-test of the diamond consolidation. If price is unable to close an hourly candle back inside the diamond, expect 2700 to fail. Targeting 268 or as low as 267.5 on SPY, either tomorrow (Friday 7/6) or early next week.
SPX500USD futures will pull us down lower during the Globex session. The NY close demonstrated selling pressure in the upper yellow zone on the chart; an area where sellers have profited from selling before. The VZO-PZO below the chart shows falling back into the diamond will likely cause a fail of the bullish trendline on the oscillator, and the TMF above is signaling lower with bearish divergence. If we continue to trade lower on tariff jitters, there's good reason to think the NY open will involve anther test of the vitally important 2700 area (lower yellow zone) on SPX. I expect an initial bounce on high volume, then a a back-test of the diamond consolidation. If price is unable to close an hourly candle back inside the diamond, expect 2700 to fail. Targeting 268 or as low as 267.5 on SPY, either tomorrow (Friday 7/6) or early next week. 
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