I remain somewhat divided about our future, though I continue to have a bullish bias, given what seems to me to be a total sentiment and now also a breadth washout.
I remain uncertain as to whether we are more likely to be completing a large bullish wedge (e.g., 5th chart in this), of if darker alternatives (such as this) still lie ahead of us.
If we are ending a large bullish wedge, I will note that we have recaptured the lower rail (green arrow):
It would be normal for us to “underthrow” such a wedge. And so if we do move up from here, this structure would look good as it stands.
And the Nazzy still remains within its parallel rails, which it only briefly lost (the S&P is much farther below its lower parallel rail).
If these trend lines can hold, I am optimistic about at least some kind of strong bounce.
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