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As noted in the recent video, it is possible that the S&P 500 is forming an ending diagonal type pattern on the hourly chart with implications of sharp downside in the short term.
As of this morning, the trendline of the diagonal is now broken and the MACD is in a confirmed sell coming off of a mild bearish divergence which is typical of the momentum loss at the end of a price pattern.
In order to provide solid confirmation that we have seen a pattern of some degree complete with this ending diagonal, we will need to see SPY trade back below the March 19th low by April 9th.
Also continue to watch the QQQ for a break of the uptrend line since coming off the Nov 2012 low. That would be a first indication that a possible head and shoulders top pattern may have completed the right shoulder.
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