Thomas Carreno: Here we are in the midst of the slow summer trading season and the market continues to try to press higher. So it would appear that the market still has a chance to press higher but now in the short to intermediate term there are some patterns that are showing we could be coming into bearish correction territory again.
There is a Gartley Sell pattern in the Nasdaq Composite index (NASDAQ:QQQ) and at the same time there is a bullish butterfly pattern in the ProShares VIX Short Term Futures (NYSEARCA:VIXY). So this appears to be pretty good potential probability that the market is a bit tired at this juncture.
The Euro (NYSEARCA:FXE) breaking down to new lows and the US dollar (NYSEARCA:UUP) perched at highs seems to be helping the bearish scenario.
It is still early, but one cannot rule out that we are at a possible key juncture for a ‘continuation sell’ of the bearish tape action that has been occurring since the 2012 march top.
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