We currently have potential bear flag formations on both /ES  and /NQ as the traders await Jobless Claims at 8:30 & ISM Non-Mfg at 10 am, with the former likely to either trigger a sell signal on these potential continuation patterns (via an impulsive break down below the patterns) or foil them with an upside breakout & rally (and any up or downside break before 8:30 likely to be a whipsaw signal).

I’ve listed both the measured targets for these patterns, which is the distance of the flagpole or in this case, the steep price channels that were highlighted yesterday, added to the highest point of the flags before any potential breakdown. I’ve also including my preferred targets, again, should we get some clear sell signals within the next hour or so, which are 2820 on /ES & 7402 on /NQ. Should the market go the other way today, I will follow up with potential bounce targets although there isn’t any very significant resistance overhead until the top of the Aug trading range on /ES around the 2940-2946 area.