Here is an update on the patterns in the SP 500 Emini we have been following.
The first chart shows the outcome from the AB=CD sell pattern that formed and completed at the upper end of the range.
The second chart shows a daily chart of the SP 500 Emini and the long Daily bar using a Japanese Candle. This candle engulfed the last week of trading and is very bearish looking. The lower support is 1179.75 which was traded through in globex. Appears to be more downside to come.

SP 500 Emini downside break

SP 500 Emini Bearish Japanese Candle

This chart posted updates the Parallel Channel that has formed in the SP. A couple of weeks a go an AB=CD sell pattern formed and completed as the price traded through the upper end of the channel and the price failed back down. When failures of channels occur then the trader can expect at least a test back into middle of the range and back to lower end of range. If a total reversal then price would break the lower support. In this case it has not done that.
In the chart posted below the SP is now back up towards the upper end of the channel with another AB=CD sell pattern.
This week is FOMC meetings and it will be interesting to see how this new sell pattern plays out.

One of the last posts to our media center, http://tradingliveonline.com/media.html, posts was on failed patterns and how those can be tremendous trading opportunities.
Here is a great example; the first chart shows the AB=CD sell pattern just above the parallel channel upside breakout.The second chart shows the failed upside breakout and failure.

In this update I am posting 2 charts of AAPL one is a daily time frame and the other a 5 minute. The news recently has been extremely bullish and that is also evident in the daily chart. But sooner or later that changes, today on the 5 Minute chart of AAPL a butterfly sell pattern formed leading to a sell off below the days lows. Whenever I hear extreme sentiment on one side of the other I like to look at several time frames and many times I will see another view.

It’s good to pay attention to what you “hear” and then Trade What You See.

AAPL Daily

AAPL 5 Minute