Though we think we can predict the expansion direction out of a triangle, we can’t. No matter what the prior trend was.

A consolidation means prices have come into balance. It doesn’t take much to tip them out of balance to cause an expansion move, and we’re never guaranteed to know in which direction the imbalance will take prices.

I still believe a final downswing needs to form to complete the structure, however I would officially negate that view if we broke strongly above 800 on the S&P. I believe 800 (if not here at 775) holds strong resistance and until proven otherwise with a break above, I still treat this as a counter-rally swing into EMA resistance.

Corey, do you still maintain that we are in the zone for a down leg on SPX and other indeces? The INO analysis of last Friday shows we are almost there.

You hit it – there’s so many cross-currents going on with Treasuries right now. It’s certainly not as easy as it used to be, with the Government issuing so many bonds which increases supply and drives down price. Then if the market does fall (soon), we could have a situation where both Stocks and Bonds fall simultaneously.

Generally we’d expect investors to flock from one or the other, but the “Money Printing Press” is throwing a wrench in cross-market analysis.

Still, we want to keep our eye on the 800 level in the S&P (not to go above) and the $122 level in 10Y Note Index (not to go below).

Not saying these will hold, but these are the common expectations and potentially significant price areas to watch.

Tresuries should fall in price, Govt needs to borrow more, so a breakdown should be expected, i am not sure if i would interpret that as bullish for Equities?