Today’s action broke the closing lows of 26 days, and constitutes a sell signal for us. Of course we already sold some time ago but for multi unit traders this would be an add on signal. The top chart shows the ominous combination of both the long term trend line and the 200 day moving average acting as double resistance. We would review all our longs and analyze the likely effect of an overdue downwave here. And we would certainly not be without well analyzed stops.
The bottom chart shows a close up of the day. A few more days would be nice to complete symmetry with the left shoulder of what looks to be a head and shoulders top. The unaware will probably react to this day with a strong upday Monday.