Here's what I think:


On the weekly chart almost everything points to the start of a downtrend that could last 7 weeks. Targets based on previous support levels are 875, 820, and 807 based on previous support levels.


On the daily chart I have conflicting signals (5 bearish and 2 bullish) which makes this week hard to read so we have to look at the weekly chart which in my opinion is clearly bearish. Many of my oscillators are at or near oversold levels and a few have turned down.


My outlook for this week is that we move lower, however an attempt at the recent 923 high is possible. This would surely push all indicators into oversold territory and possibly even form bearish divergence making it an ideal place for adding to short positions. It could also form a rather complicated H&S Pattern with two shoulders on each side, with a high of 923 for the shoulders and the neckline around 890, another place to add short positions.


I'm currently short so I admit to being biased to the downside.

What do you think and why?

We broke some major bear trendlines in this rally from 666.
I expect at least two legs up. Therefore, I think we are going to have a little pullback from the 950 area. Then I think we are going to rally again. To where? Nobody knows.

After that second rally, I think we are going to crash, whether or not it goes down below 666 it's hard to know.

The market is willing to try anything twice, but if it can't make any progress on the second attempt, it will usually stop and reverse. And it will usually be at least two legs.

Just my thoughts.

John murphy just picked up on the H&S. And from the drop overnight it looks like this could be a top..