Here is an update of the 5-minute chart from the other day with the pink diamond pattern in play as well as the blue sideways triangle. Price breaks out at the blue circle so the bulls throw confetti but the joy was very short lived as stocks rolled back over to the downside. Price reentered the tip of the triangle and collapsed out the bottom.
The vertical sides of the blue triangle are 20 to 26 handles. If price continues breaking down from the 2181 level, the SPX will target 2155-2161.
Fed Chair Yellen speaks tomorrow at 10 AM EST so markets will probably churn into her words of wisdom. Stocks are in a low volume environment. Asia trading volume is down big-time. Everyone is waiting on Yellen to tell global traders how to trade. It is a sickening world the central bankers have created. Anything can happen tomorrow morning once Yellen opens her pie hole.
For sideways symmetrical triangle patterns like the blue triangle above, it is very common to see a false breakout, or breakdown, which typically occurs about two-thirds of the way through the triangle. Price jumped up and out at the blue circle and it was a false breakout. Price then returns to the triangle and collapses out the bottom. This is common behavior for the pattern. Conversely, if the initial move was a breakdown, many times price will reverse quickly and recover back inside the triangle and then breakout to the upside. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.