If bulls hold the 350 level then I don't think this scenario will occur however if they don't then:
Thank you for reading - This is technical standpoint - It is a potential scenario which means it will or won't happen, don't take it too seriously, too early to get confirmation - feel free to comment if questions
- Potencial scenario
Because of weekly rejection of the 50MA + confirmation of a hammer candle, I expect the market to dump to the next support, the 100MA, and trend line at ~325. It will hold the support and go back to the 350 level however bears reload and plunges the market to ~300 creating a bull trap. Even though bears are in full control, bulls try another attack however they get rejected on the neckline of the H&S, confirming the pattern. And finally, the bears suck the last droplet of bulls' blood and the market goes down to the 200MA
Thank you for reading - This is technical standpoint - It is a potential scenario which means it will or won't happen, don't take it too seriously, too early to get confirmation - feel free to comment if questions