One week before the expiration of the large Red T structure formed at the 'Brexit' panic low the market appears to have 'stopped' and is effectively treading water waiting for some kind of catalyst.
Should we take the blue pill or the red pill – will the market Buy its way out of this stalemate or Sell off ?
What I believe is happening is that the downward force of the ending of the really long-range T structures – marked in pink and purple – are being counteracted by the upward force of the Red T structure.
The Red T structure is significant because it starts from an extreme high in the oscillator and is centred on an extreme low, similar to the main arm of the pink T structure.
As we can see the recent low formed a small T but the oscillator has failed (so far) to make any headway and the market has muddled along sideways. The downward sloping 'cash-build up' line marked in green remains unbroken and waiting to be used in the next T structure.
So what happens next? We 'should' see a push upwards into the final days of the Red T structure, followed by a distinct lack of buying power afterwards, ideally accompanied with some heavy selling and a low in the oscillator to form a new T structure, and hopefully a rally into Christmas after the Election is resolved.
Be prepared.