The Purple Triangle has Completed as a Replay of the Red Topping Triangle
On Friday the ES purple topping triangle completed with a rising megaphone top with a smaller rising megaphone top inside it, and an even smaller rising megaphone top inside that. This is exactly how the red topping triangle completed. The last trip to the purple triangle top also completed with a rising megaphone top.
Rising megaphone tops are short squeeze formations and should bring Friday’s high SPDR S&P 500 (NYSE:SPY) put-call ratio down to its 20-day MA or even below.
Friday's move also formed a conventional rising wedge. The final little interior rising megaphone broke out the top of the triangle, will form an H&S or other topping pattern along the top, and then break back into the triangle with high odds of an ultimate breakout through the bottom.
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