I think what we’re looking at in the 60min time frame is the early stage of a new Bear Flag formation. For the moment, though, this must be taken at face value and so this formation is a new rising price channel.
This morning, I had another trend line on this chart which was anchored on the most recent swing low and the low from yesterday’s last 60min candle so that is what I’m referencing in the chart text.
While Longs might be encouraged by what has happened the last couple of days, the daily charts are still shouting “Avoid.” Bears or Bear wanna be’s will need for Q’s, SPY, DIA, and IWM to bust out of the bottom of their respective rising price channels, which would confirm that this is actually a Bear Flag, before they attempt any new short positions. IMHO, it’s a stand off for now with neither camp having the edge in the short term. Mid and longer term, Bears have the edge and it’s theirs to lose.
Chart courtesy of FreeStockCharts.com
It’s 8:30pm ET and I have not had a chance to look at anything else, yet, but will do so a bit later. If I find something worth noting, I will add it below this post.