Note the sloping characteristics of the 2 islands... first one is sloping up enthusiastically, 2nd one sloping down. RSI divergence confirms change in sentiment as well.
Doesn't matter though. If Monday breaks and stays above $2675 we're probably headed to the $2700s easily... If it doesn't and turns red, $2600 easily and possibly even lower. Lots of stuff going on next week:
1) FANGs reporting
2) Chinese VP visiting (As crazy as it sounds, I think the market is currently pricing in that a deal HAPPENS next week)
3) FOMC meeting (always fun when one man's choice of words can flip market sentiment)
Lots of risk and uncertainty, hard for me to fathom ppl buying like mad to hold before these events, but then again I've been wrong for weeks now so hence the "neutral" stance. If it breaks the double top I'll likely buy some short term calls for the imminent ride to $2700. If it looks like Monday we're closing lower, will probably add to march puts. Intermediate to long term still bearish and think we revisit the 2400s by April.
Doesn't matter though. If Monday breaks and stays above $2675 we're probably headed to the $2700s easily... If it doesn't and turns red, $2600 easily and possibly even lower. Lots of stuff going on next week:
1) FANGs reporting
2) Chinese VP visiting (As crazy as it sounds, I think the market is currently pricing in that a deal HAPPENS next week)
3) FOMC meeting (always fun when one man's choice of words can flip market sentiment)
Lots of risk and uncertainty, hard for me to fathom ppl buying like mad to hold before these events, but then again I've been wrong for weeks now so hence the "neutral" stance. If it breaks the double top I'll likely buy some short term calls for the imminent ride to $2700. If it looks like Monday we're closing lower, will probably add to march puts. Intermediate to long term still bearish and think we revisit the 2400s by April.
