Both /ES (S&P 500) and /NQ (Nasdaq 100) E-mini futures have formed bearish rising wedge patterns on the 60-minute time frames. Impulsive breaks down below both wedge patterns would trigger a sell signal on the major stock indices.

I favor a break below these wedges today although if that proves to be the case, it may or may not come following one last thrust up to the significant resistance zones (price resistance + Fibonacci clusters) above.

As we observed yesterday immediately following the open, the market can move very hard & fast in either direction as the big institutions step onto the playing field once the regular trading session opens at 9:30 am EST. As such, I’d like to wait to see how the major indices trade at least for a brief period after the opening bell today before making a decision on whether to add back any index or sector swing shorts although I did want to pass along these levels in advance for those interested.