While the head and shoulders may have been invalidated we are still forming a rounded top in what looks like a potential trip top formation.
This favors the bullish care since we are in a predominate bullish trend, but unlikely to last long.
We are witnessing some profiting taking, and for now there's your pattern structure for risk-off markets. VIX also remains in a newly bullish pattern breaking a downtrend structure (although a very weak break and still very early to tell if anything real materializes) but nonetheless a clear break. We are long VIX here, short YM. We suspect trading will remain...
All 4 durable goods and GDP data points came in better than expected this morning at 830 which was the reason the initial short there was cut and flipped. If those data points were mute or worse than expected I wouldn't have done that, it happens. I expect it to get very choppy now moving into the holidays and also see YMH7 down to 19800. Important to note that...
Bearish turn under DP1 - if you aren't already short it's a bad idea, the market is too strong. However, 19920 is a new strong resistance area of distribution. Again, these markets change quick to the upside.
/YM still looking like it wants to roll over some. Way over extended on the 4H ratio side.
During oscillation phases sometimes short term trades will wind up like this - that's because I'm really still looking for a short around the 19900 barrier on the front contract, so that it can hedge my long positions that I will load up on the back contract.