Sum/3 of SPX500, DJI, and NDX indicates a potential drop based on the megaphone structure. Could be intense but probably not as impulse-like as the red arrow conveys.
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Bulkowski (link below) says pattern can complete after 5 touches (3 on one side 2 on other). He seems to say the breakout odds are 40% down and 60% up. For an upwards breakout, there’s a 51% chance that price will first decline 50% (pullback halfway between pattern’s top and bottom) then breakout up.
That said, it’s possible that the megaphone completed its last touch in July and its pullback in August and is now heading to breakout upwards. Then again, it did not pullback 50% and has yet to breakout. Perhaps a safe trade would be to short at open with a stop loss set above top trend line. thepatternsite.com/bt.html
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Spoos specific but same sentiment.
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Sharing bc it deserves more love than it has gotten. Keep in mind SPXL/EDC ratio was .75 at publishing. Currently at .72. In other words, EDC price change is up 4% relative to SPXL price change.