Here we are in the midst of the slow summer trading season and the market continues to try to press higher. So it would appear that the market still has a chance to press higher but now in the short to intermediate term there are some patterns that are showing we could be coming into bearish correction territory again.
There is a Gartley Sell pattern in the Nasdaq Composite index and at the same time there is a bullish butterfly pattern in the VIXY (ProShares VIX short term futures). So this appears to be pretty good potential probability that the market is a bit tired at this juncture.
The Euro breaking down to new lows and the US dollar perched at highs seems to be helping the bearish scenario.
It is still early, but one cannot rule out that we are at a possible key juncture for a ‘continuation sell’ of the bearish tape action that has been occurring since the 2012 march top.