Bear Flag Breakdown Sometime Today
While it's always possible that this breaks up, the likelihood of a breakdown on this bear flag is high. The intensity of the initial legs down warrant further price action to the downside.
I think a better entry can still be had closer to the top of the triangle pattern, somewhere around 4540. Obviously all eyes will be on whether or not 4k holds when it gets there. I don't have any strong conviction either way in that regard. However, since the market will always abide by the rule of maximum pain, I could see 4k breaking similar to the way 6k broke earlier in the year, giving up just a few hundred dollars but really making everyone think that there was no end in sight to the bear market. A bounce in that range happened a few times and it scared the life out of everyone. For that reason, take a close look at the price action if this happens as it could be the discount of the century.(these kind of statements never age well :))
Good luck trading,
D
I think a better entry can still be had closer to the top of the triangle pattern, somewhere around 4540. Obviously all eyes will be on whether or not 4k holds when it gets there. I don't have any strong conviction either way in that regard. However, since the market will always abide by the rule of maximum pain, I could see 4k breaking similar to the way 6k broke earlier in the year, giving up just a few hundred dollars but really making everyone think that there was no end in sight to the bear market. A bounce in that range happened a few times and it scared the life out of everyone. For that reason, take a close look at the price action if this happens as it could be the discount of the century.(these kind of statements never age well :))
Good luck trading,
D
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