8 Aug 2013

The markets are confused and it does not know its head from its ass.  There could be a H&S pattern forming in the 60min chart of the SPX, but so far the indicators seem to still be sitting on the downside.  1700 seems to have become a resistance and its another fight to get above it again. 
Also to note that our 60min Stochastics has now reset to the upside and if it crosses down early tomorrow will we see a continuation lower for our indicators.  The longer the Stochastics stay in the overbought the less likely the outcome for a bearish scenario.

Main-Trend: DOWN (Unconfirmed)
Short-Term: DOWN

Dotted green arrows show a possible bullish scenario...

 

Possible bearish scenario...