ES is at the top of its navy blue topping megaphone as well as the top of the gray rising megaphone top within it. It basically did nothing on the nonfarm payrolls report.
It’s still crawling up the bottom of the price channel Bullethead posted yesterday afternoon (see comments).
It’s forming another even smaller top as I write this. It could be a small megaphone (pink on chart) or it could be another rising megaphone (blue on chart). It’s a hair away from the top of its 6-month megaphone on the daily chart, and it probably wants to get there. Whatever this top turns out to be will take care of the remaining requirements for the price channel.
The thing that makes me think the market will top sooner rather than later is last week’s double NYMO close over 80. The longest the market has taken to correct after that signal was 13 days.
But you have to wait for a topping pattern to actually complete and break out downwards before you short or even exit longs. For all we know, the NYMO signal will take a new record amount of time. I doubt it, but it’s possible.