Last update expected Friday's low to at least be tested, and it was, which could have satisfied the requirements of the pattern. It is interesting to note, however, that while SPX made a slight new high since then, INDU has not. In fact, all INDU has done (so far) is rally back up to the noted blue trend line and get rejected from below. Bulls need to get back above that line, or risk a test of the black trend line (for starters; we'll see how it develops if that happens -- but keep in mind that the LARGE b-wave high is still on the table for the moment).
SPX tested its low then made a new high at the 3100 zone (again).
It would not be surprising for SPX to test the lower blue trend line:
In conclusion, we continue to have developing signals of at least a temporary pause in the rally, if not more -- we'll see how things shake out from here. Trade safe.
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