We have an impulsive reversal in SPY so far following the breakout earlier today with SPY backtesting the top of the trading range + bottom of the rising wedge now (both are support). As such, much more downside from here would confirm the false breakout/bull trap scenario recently laid out, providing a sell signal on the broad market. 60-minute chart below.
SPY 60m 2 July 13th
The pending sell signal on /ES (S&P 500 futures) highlighted in the video earlier today has triggered with the impulsive breakdown below the 60-minute bearish rising wedge pattern. The recent breakout above 3175-3180 resistance will to prove to be a “fake out” or failed breakout, should /ES continue much lower.
ES 60m July 13th
I would expect at least a minor reaction (bounce or consolidation) here on this pullback to support although reaction or not, should the market continue much below these support levels, that would likely open the door for a larger & possibly quite impulsive sell-off.