Looking across the equity, commodity, and currency markets, I notice that many are sporting triangle patterns suggesting consolidation. With the USD showing signs that at least another low is due at some point, inverse dollar correlated instruments seem to be confirming this thesis.
In my opinion, the S&P is either in a rising wedge which implies trade over yesterday's highs, or a broadening top which targets much lower (1150 ES area). As a start, it could easily target the 1160-1163 area.
During times like these, I like to wait for the market to set up first and then trade the extremes (highs or lows) while avoiding the middle. Therefore, there may not be much for me to latch onto since today is a half day for me. Heading off early for a nice fall weekend.
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