- Trend = bullish
- Phase = 3 (the fight around the prior high / will we continue or reverse)
- The index, eventhough it put in a new higher high, never achieved to push really higher. Since July 21st the index is in some kind of range.
- Although the marketstructure is still bullish (the weekly low has not been broken yet), we might possible see the development of a head and shoulder - reversal pattern. The prior high/first structure being the shoulder level, the lower liquidity level being the neckline and the new high higher being the head.
- The index has touched the neckline again and is now recovering higher towards the shoulder level. At this level we have to be careful and look out how the index reacts on the lower timeframe. Do we see bearish reversal in order to complete the head and shoulder pattern ? Or do we see further bullish continuation and are we pushing higher towards the head or even a fake-out ? In those cases, we still are not out of the woods, because in those cases we could still see a head and shoulder pattern with a double top. Only when closing convincingly above the weekly high would indicated bullish continuation past the current all time high.