Everything seems to be breaking down in the US. One such example is Nasdaq 100 index issue, Joy Global (Nasdaq: JOYG).
As we can see from the chart, for the past 10 months, JOYG has been on a steady climb. Currently, we saw it gap down and form what seems to be an inverted pennant. The pennant is currently breaching the said support of the 10 month uptrend. It hasn't clearly broken down from both the support and the pennant but the inevitable is coming. What gives it away is the momentum of the MACD. Not only is it in a sharp drop, but the 2 lines have diverged away from each other. So the momentum for it to drop is there, we're just waiting for the shoe to drop.
Right now, the support of the pennant is pegged at $47.10, with a downside target of $40.18. That's roughly a 14% return. That's quite good considering this is expected to happen in a very short while.
Not only are my fingers itching to short this, but it's like a hunter waiting in the wings while his prey sits right in front of him. Hopefully, the hunter's name isn't Elmer Fudd.