TechnoMeter

For starters, we may very well see a bounce and retest of the neckline around the 11670-threshold. Retesting the ‘neckline’ is a fairly common occurrence and can offer traders a spot to establish (or add to) short positions. We may even see a stronger bounce develop back above resistance, but is likely to prove short-lived if the topping formation is to exert downward pressure. At this time, it will require a move above the trend-line running down off the September high and overtaking of Thursday’s sharp sell-off to bring pause to last week’s break.



Looking lower, there is support not far below at the lower parallel tied to the trend-line off the September high. After this minor level of support, nothing meaningful arrives until 11429, 11366, 11298, and the 200-day MA (currently 11243, but rising). The ‘measured move target’(MMT) clocks in at ~11240. The ‘MMT’ is calculated by simply subtracting the height of the pattern (head to neckline) from the neckline. It’s a symmetry-based target.

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