Today's gap down on quite a few ETFs could become a "Gap Continuation" from their recent declines which began in July...if so, the following ETFs that gapped down today, could fall the same amount on this second leg down that they fell on their first leg down. It remains to be seen as to whether this will play out or not...but this is something I'll keep an eye on over the next few days.
Further to my post yesterday, here is how Day 2 of this 3-Day chart of EEM ended today...it broke below the former neckline of the former H&S pattern (41.66)...will see how it closes out tomorrow and whether it continues to form more weakness under this price level.
Further to this morning's post on the NKD, here is how it closed on the Daily chart today...it's sitting on the downtrend line from the "pink diamond" pattern that I mentioned in my post...another index I'll be watching over the next few days to see whether weakness continues to build, particularly if price falls below this trendline again.
Furthermore, I'll be watching the price action on the 4-hour charts below of the YM, ES, NQ & TF...in terms of relative weakness, the NQ is leading, followed by the TF, ES, and YM. An escalating move below the -2 deviation levels on both the shorter and the longer regression channels could confirm my gap continuation theory/scenario on the ETFs above.
Finally, I'll continue to watch these instruments on the Daily chartgrid below and will look for continued market cohesiveness in terms of weakness in equities (in particular, financials), commodities, Oil, EUR/USD, TNX & TYX vs. strength in Gold, the US$ and the VIXs (as referred to in my post on August 15).
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