All three of the major US large cap indices have now clearly & impulsively broken down below the 60-minute uptrend lines/bearish rising wedge patterns, thereby providing a sell signal on the US markets. Once again, this week is by far the most significant week of the current earnings season not to mention several key economic reports as well as the FOMC meeting this week. As such, volatility is likely to increase throughout the week which increases the risk of sharp rips & dips, whipsaw signals, stop-raids, etc..

click on the first chart to expand, then click on the right of each expanded chart to advance to the next chart

With all 5 FAAMG stocks still on deck to report this week, a backtest of these wedges, even a brief snap-back inside the wedge can’t be ruled out although my expectation remains for more downside in the coming days & weeks. 60-minute futures charts of the Nasdaq 100, S&P 500 & Dow Jones 30 with some price targets/support levels above.