Equities and EURUSD have both been crumbling overnight. The potential double-top on ZB and TLT is also looking a good deal less impressive on ZB this morning. I've been mentioning regularly that the overall setup on bonds is still bullish, and if TLT clears the potential double-top area that will be even more the case.
On ES I mentioned the possibility of a double-top forming on Friday morning and that's starting to look pretty good. ES is extremely oversold on the 60min chart, and we may well get a decent bounce soon, but there are two key support levels to watch if we do get much more downside. The first is rising support from the June low in the 1335 area, which is also a potential H&S neckline. The second and far more important support level is at 1320. Anything below there delivers a lower low and triggers a double-top target in the 1265 area, effectively for a test of the June lows:
here. In that post, which might have been better titled 'The Four Horsemen' I was talking about the very bearish-looking (for equities) setups on copper, USD/EURUSD, bonds and EEM. I'll post the EURUSD chart again this morning as the monster H&S I've been posting on EURUSD has now almost completed forming overnight, and is about the test the neckline in the 1.205 area. As the pattern target is at (cough) 0.77, this is an important level to watch:
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