Gartley Sell Pattern In The Nasdaq And Bullish Butterfly In This VIX ETF (VIXY, QQQ, FXE, UUP)

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.

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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.

Written By Thomas Carreno From Best Online Trades

I started Best Online Trades because I really enjoy trading and I also enjoy writing about trading. Writing about trading or trading strategies helps transfer thoughts that would otherwise stay in ‘theory’ and helps move them to more concrete form for me. And hopefully along the way you will pick up something useful as well.  BestOnlineTrades covers many different aspects of trading, from commodities to stocks, from indices to ETF’s.

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