Dollar Flat-Topped Megaphone

Dollar Index (DX) Flat-Topped Megaphone (Red)

Dollar Index (DX) Flat-Topped Megaphone (Red)

The dollar appears to be forming a flat-topped megaphone (red on chart).  It needs to retest the neckline before a trip to a new formation low.

It’s then either a favorite to return to the neckline for a breakout upwards or fail to make it back to the neckline and break out into a big move down.

Closing in on Labor Day Weekend

Head and Shoulders

ES Could Do This

ES needs to complete a head and shoulders before a big move down to retest the January and February lows. The head could be in (purple scenario above).

Head and Shoulders

But Is More Likely To Do One of These

But more likely we’ll see a final pop, even if it’s after another dip.

Nonfarm Payrolls Report is on Friday.

Get Ready for a Prolonged Sideways Move

Get Ready for a Prolonged Sideways Move

The next big dip will likely retest or take out the January/February lows before another new all-time high.

Still Looking for a Pop

ES Appears to Be Forming a Rising Megaphone (Red) and Should Be About to Take Off In Its Biggest, Fastest Wave Up

ES Appears to Be Forming a Rising Megaphone (Red) and Should Be About to Take Off In Its Biggest, Fastest Wave Up

ES appears to be forming a rising megaphone, which makes it likely it’s about to move into a pop through the top of its blue flat-topped megaphone as we head into Labor Day weekend.

The little red rising megaphone should top with a small H&S, and that should mark the top of the head of a larger H&S before a move down to retest the January and February lows.

Get Ready for a Prolonged Sideways Move

Get Ready for a Prolonged Sideways Move

If the red rising megaphone fails to top with a proper H&S inside the formation, I’ll be posting a slightly different and more time consuming topping scenario.

ES Morphed Its Flat-Topped Triangle into a Flat-Topped Megaphone

ES is Trying to Draw a Flat-Topped Megaphone on the Chart for a Final Pop

ES is Trying to Draw a Flat-Topped Megaphone on the Chart for a Final Pop

ES has morphed its potential flat-topped triangle into a flat-topped megaphone (red on chart).

The megaphone could break out downwards to 2125 before heading up to a new high.  Or it could head straight up into a breakout through the flat top.  Or it could move back to the top, put in one more lower low for the formation, and then break out to a new high.

ES is working on a head and shoulders top before a plunge to the bottom of the navy blue megaphone and a retest of the January and February lows.