S&P 500 looking like it has made a topping pattern
|The weakness hasn’t yet followed through with massive selling, but price action shows we’re now trading below excellent support and look poised to test 6636/6629. This area is crucial in the coming days.
A loss of this support would complete the topping pattern, leaving market structure vulnerable. First wave of selling could target 6200, with potential for a deeper move toward 5955.
Yes, that’s a long way off — and I’m hoping buyers leap into action to stem the wave of selling pressure. But there’s a lot of work to do on the topside before we’re in the clear.
6884 is the level that would break the topping pattern and restore structure — but frankly, I don’t see that happening. The technical indicators bear out the expected wave of sellers.
Today’s Pivot Point: 6706/6710 (depending on your system)
It’s Friday. Don’t throw away the profits you’ve made this week.
Buyers beware.
Markets go up by the stairs, down by the escalator.
My Money. My Risk.
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