S&P500 Broken Down
Using the SPY now to demonstrate (instead of the futures).
The 4H chart shows better details of the breakdown IMHO.
You see, since the end of May, the SPY had been surging and dipping, and then early June the upper end of the range tightened a bit, forming a nice triangle. Typically, a triangle like this in a recent uptrend acts like a pennant or flag, and breaks out to a higher target. Thing is, yesterday morning opened with a gap down and then the afternoon session ended the day in an avalanche style slide.
This sliced through the very critical gap support (red rectangle) and broke down out of the triangle decisively with a LONG MARUBOZU candlestick.
This represents strong momentum, and I would not ignore it.
Had mentioned in the weekly outlook about NQ1! / NASDAQ is heading down... similarly, the last low should be revisited.
Technical indicator (MACD) is already getting ready to cross into the bear territory yet again... hinting that for the rest of June, the downside risk prevails imminently.
The 4H chart shows better details of the breakdown IMHO.
You see, since the end of May, the SPY had been surging and dipping, and then early June the upper end of the range tightened a bit, forming a nice triangle. Typically, a triangle like this in a recent uptrend acts like a pennant or flag, and breaks out to a higher target. Thing is, yesterday morning opened with a gap down and then the afternoon session ended the day in an avalanche style slide.
This sliced through the very critical gap support (red rectangle) and broke down out of the triangle decisively with a LONG MARUBOZU candlestick.
This represents strong momentum, and I would not ignore it.
Had mentioned in the weekly outlook about NQ1! / NASDAQ is heading down... similarly, the last low should be revisited.
Technical indicator (MACD) is already getting ready to cross into the bear territory yet again... hinting that for the rest of June, the downside risk prevails imminently.
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