NQ (Nasdaq 100 emini futures) as well as ES & the the other US stock index futures have confirmed positive divergences in place confirming this falling wedge pattern (bullish) yet we only just recently broke down below key uptrend lines on the daily chart in all major US stock indices. Either these divergences fail to play out in the form of a meaningful rally -OR- the do play out with the most likely scenario being a backtest of the recently broken daily trendlines at higher levels before a lasting reversal & correction in US equities.

As the daily time-frames take precedence over the intraday time frames, I give a considerable higher weighting to the recent breakdowns of all major US stock indices below their respective uptrend lines. As such, I'm leaning towards the former scenario & prefer to sit tight with my current short exposure, adding if/when these current 60-minute bullish divergences are foiled/negated -or- on a backtest of the rising wedges, if they bullish divergences do manifest in the form of a rally (which would likely be limited to a bounce of 2% or less in the broad markets).