Let’s take a look at the Weekly…

Last week (pink circle) the weekly candle ended just above the white line. What’s the white line? The white line is the Heads and Shoulders neckline that was broken 3 weeks ago. The H+S pattern is 85% reliable and predicts a movement down to the $17-$18k region.

What’s interesting is that although the daily candle body has closed below the neckline 2 weeks ago, the weekly candle has not. And last week’s weekly candle closed just above it. You can see that this week’s weekly candle is WAY BELOW the neckline; way below as in: the body started below the neckline and the body is currently way below the neckline and the week is almost done. If we close below the neckline, I think this is a very bearish signal for the whole market, and will convince everyone that we will be heading much lower – as I have been saying for the last 3 weeks.