The Ghost Of Volatility Past

Are the equity indices topping out here or not. I think yes, though likely just for a retracement before higher highs. SPX is retesting good trendline resistance, is on a strong daily RSI 5 / NYMO sell signal, and a daily RSI 14 sell signal is now brewing as well. Another retest of the all time high would establish possible nested double tops. Maybe. SPX daily chart:

NDX broke through initial channel resistance and is testing a slightly higher and better alternate channel option. NDX daily chart:

It’s hard to read the consolidation on RUT in recent days as anything other than a bull flag inviting a retest of the high, so that may be unfinished business above. RUT daily chart:

The ES, NQ and TF futures charts below were done before the RTH open for Daily Video Service subscribers at If you are interested in trying our services a 30 day free trial is available here.

A decent nested double tops setup on ES if the all time high is retested and rejected. If so a hard break below weekly pivot (marked) should set the downside ball rolling. ES Dec 60min chart:

NQ is already on a 60min sell signal and a 60min RSI 14 sell signal is brewing on NDX. NQ Dec 60min chart:

Not much to say about TF other than this very much looks like a retracement / flag. If so the ATH should be retested before any reversal. TF Dec 60min chart:

If ES can break the all time high with any confidence then Stan has the next target in the 2610 area.

I’ll leave you with my favorite horror parody from YouTube.  🙂

Everyone have a great Halloween. 🙂

Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

31st Oct 2017

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