Medium-Term Declining Trend Channel

Market behavior was negative today as the open was a gap down and recovery never happened. Looking at the 10-minute bar chart below, you can see how the market just rolled over and hardly put up a fight to regain losses.

After we had the long-term signal change to SELL yesterday, it became clear we needed to zoom out and reevaluate the scene. Looking at the daily chart below you can see how we drew a declining tops line from April high to the July high. From there a line parallel was drawn and moved downward to form a trend channel. You can see that the previous market lows line up quite closely. (more)