A simple chart for this weekend. I do not believe market has the strength to break above the multi resistance level without any consolidation. also Monday, 6/15, is an important time level that could lead to a big reversal. Of course, it can be one day off the chart, so if we indeed see the reversal Tuesday again, do not surprise.
Also next week is the OE week. June is big month for options and many leaped calls will be expired. Both equity and index put/call ration has been staying in a very low range for the past three months. Option mm have to do something next week, or their loss on the calls they wrote could be a horrible number.
Ending diagonal is still my current view and i tend to believe 1) market peak is 6/11; 2) the peak is next Tuesday and we reverse at the end of that trading day. I prefer 1 more.
One more daily chart below: momentum negative divergence and volume is fading. This rally won’t sustain any more.
EWI has a different count, just paste below for your reference.
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