All of these charts show possible head and shoulders patterns with RSI testing 50. A failure of the RSI likely means a test of the HS neckline...
If overnight futures were to take us down as they did just after they reopened on the TF to below the 612 area for the cash index (RUT) then we may just be waking up to these patterns breaking down on the open. On the other hand, these trend lines themselves may be bounce points, so, if they are not broken we could get our next bounce there.
Again, we should hold the upper trend line on the wedge shown in my previous post and make an attempt up. I think a lot of this depends on what is happening with all that money market cash. If they are done reallocating it then I would say the probability of a significant pullback, if not top are greatly increased.
However, right now anything could happen and a blow off type scenario seems like the most painful way for the market to go...and given this market you can not take that for granted.
In any case, it does not seem like upside in the market is that substantial...and short and sweet would be most welcome.
