Everyone is talking about a Head and Shoulders here at the top. Its there. What the majority are not talking about are harmonics. But we'll come to that later.
We have a daily Head & Shoulders pattern. We're almost at the neck line inflection point. If that breaks and it plays out then using the H&S parameters it is pointing at around 3%. A significant move south from its recent highs. Is this along with the 10Yr signalling that inflation (from a market perspective) is over? I am only asking the question here. But, if it does break then Stocks, Crypto & Commodities are all likely to move positively imo.
Weekly
For some time (since July last year) I have been targeting the 161.8 Fib extension. It got hit multiple times (daily) and spiked (weekly) first week of November. At that point, from a harmonic perspective we work on the premise that we can anticipate a pull back to the 38.2 Fib level. Interestingly that confluences nicely with the Head & Shoulders on the daily at around 3%.
Side note: Why are harmonics so good? Well, the H&S forming was not apparent until we had left shoulder, head and the right shoulders and then wait for the breakdown, which is where its at now. Testing that break down. Whereas, the 1.618 was in play once the highs of November 2018 were taken out and held in June last year. Thats when the 1.618 came into play, 5/6 months before.
I am not predicting what will happen next but looking at the weight of evidence to form a case in either direction. Watching very closely here as again the Bond Yield direction will impact the direction of the markets.