A few trend lines and shapes I want to point out.
We may draw this wedge (green) on the Russell. If this structure stays like this, it has a bearish bias. We’re at long-term prior highs (the orange lines). And we’re at the channel (purple thing) built from the COVID crash low through the May 12th low.
What does this all tell us? Not much, yet. A big punch like this morning doesn’t always reverse sharply, so I won’t be surprised if we drift up more, or consolidate, but: the markets still have a lot to prove, I think.
The S&P is exactly at the “equal legs” pointed out in the first chart here. So, we’re definitely not out of the woods yet.
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