The set up is superb for the bears, BUT I have seen equally beautiful scenarios totally wiped out by the CB's and their algos. We're still in the RS to a breakout crush all shorts danger zone. Anything above the 60m 200ma and shorts better start checking their shorts cause it could get messy for them. Anything sub 1639 and the bears may be put on the barbie and get cooked up for dinner. The one positive here is that the head of this RS HnS was a failed RS breakout. That is about the only reason I'm giving this setup so much effort this morning.
What could make this things fall is anyone's guess. More than likely nothing can make the market fall. It will only correct if they want it to.
SPX ToS Cash Daily -
SPX ToS Cash Daily Close Up - The gaps are in brown and the island gap is still open at 1566. Almost unprecedented it is still open and has not been closed. Any serious fall should have this in its sights. Blue chan support near 23 is critical. The open gap, 50ma and red diagonal support in the 1595 area is super critical. This area on cash works nicely with the HnS minis target I sowed above.
So, in a perfect world, not this Fed/CB dominated BS we endure day after day, a fall to the 1595 area would be a great prospect here. Of course that is all a pipe dream and sounds technically stimulating, but the new normal rules. Play accordingly and watch out for the dreaded RS ramp. They are batting close to 1000 on that formation failure recently.
Have a good day.
GL and GB!