Crashes are Characterized by Failed Bottoming Patterns
The SPX closed below its 50 dma after retesting and falling from its 40 dma. The Hilsenrath rumor failed to result in a new promise from the Fed.
SPY failed to break out upwards from its bottoming formation and will therefore probably make at least a new low. A new low on SPY means an important breakout past resistance on the E-mini. SPY is already below the equivalent resistance (the June 18th high). They just keep blasting through.
Stock market bubble formations are characterized by repeated topping formations that break out upwards. Crashes are characterized by repeated attempts at bottoming formations that break out downward.
The E-mini has at least two failed bottoming formations near its current low, and the one it’s working on now isn’t doing what it should.