My 4-hour chart analytics of the emini S&P 500 have morphed from a potentially bullish coil or triangle formation (Aug 5 into Aug 10 post-FOMC close) into a near-term top pattern that has triggered sell signals pointed towards a test of very important support projected into the 1084/80 target zone. That said, judging from the juxtaposition of the sharply declining RSI and MACD indicators with the price structure, I will not be surprised to see 1084-1080 violated on the way to a probe of 1078-1075 thereafter.

Only a powerful rally that hurdles and sustains above 1104/05 will repair some of today's acute damage to the near-term technicals.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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