EOD: Should be a sling shot to new highs in the next session(s). Then watch for hits on Y in VXX that could print a reversal in the market.
Update: 12:50pm EST. Lower targets at 3017.25 and 3003.25 zones. Hourly histo bars have flattened at 3019.75 so that is a good candidate for a reversal back up to new highs in the market although we need to wait for the closing print to confirm.
The large down print on breadth has brought out the 'panic' headlines again. More often- dramatic, continuing down moves occur on minimal but increasing down breadth and with an existing negative divergence which we do not have yet on the weekly. Market may have already put in it's low for today at 3019.75.
See Chart Updated 10:30am EST below (could be a retest of the 6/23 overnight low)
Nothing so far to divert from the Y target zone shown. Daily breadth signal (blue on lower left NYAD chart) is negative. Minor adjustment to W and X positions based on yesterday's vector move.
It took 11x 4 hr candles to print X after W. So far, we have 2x 4 hr candles after X has printed so could be in for a wait- perhaps while the breadth signal digs a deeper negative value. Best scenario regarding declining breadth would be for daily negative signals to print sufficient to create a decline on the weekly. It is not required of course. As targets print, we will note vector reactions.
Reminder- it does appear that the VXX low which printed on 6/5/20 may continue to hold. We have seen this before at a number of 'tops'. While ES and the general market print higher prices, the next higher VXX 'low' target prints, then it's off to the races. Let's see if that transpires here.
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