Based on some "Technical Rules," IF the markets retrace in what is called a "contracting triangle" you should look for a bounce to the upper blue trendline that I have drawn. We should bounce around support and resistance towards the apex of the triangle that I have labeled "e" before a breakdown.
Scenario 2:
I favor this scenario more. Based on "Technical Rules," IF we bounce in this "Ascending (top flat,bottom rising)" we should find resistance @ $113.20. From there we should fall and find support from our sloping trendline where we SHOULD bounce again and then fall through right after.
Anyhow, if the markets do breakdown. I expect an extremely fast ride down...EXTREMELY FAST. To the SPY $95 levels.
Keep in mind that I DO hold a BEARISH BIAS. We may breakout to the upside and if we do my analysis will change. But until I see a reason to turn Bullish I remain a bear.
If you have any questions or comments feel free to email me @ yourfinancialblogger@gmail.com
Good luck ALL!
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