Late post today as I was out for a couple of hours after the market opened and then had major laptop issues. 

I've managed to get banned again from evilspeculator today. No idea why but hey, who needs a reason?

I posted this chart a short time ago at HOB and it has since broken upwards through the upper wedge trendline or IHS neckline. It could just be a wedge overthrow, but if not I have a target in the 1080 area, which is something to think about.

That does fit within the main ES declining channel that I posted the other day with my upside targets for this rally, which I'm expecting to peak sometime next week:

Along with that we have the longer term view on the USD daily chart, showing a rare example of a channel that turned into a wedge, though the reverse is very common:

Essentially my view for the next few weeks is this. We rally on ES to declining resistance in the 1070 - 1090 area by the end of next week, and at the same time USD falls to the lower wedge trendline in the 73.5 area. That will be the point where the action for the rest of the summer is determined.

What I am expecting to see is USD starting a new wave up into the 90s, and SPX break down towards 870, which is the target for the big H&S, broadening formation and rising wedge on SPX that I have posted before. 

The secondary but still quite possible scenario is that USD breaks wedge support and declines towards a wedge target under 76, while ES recovers most or all of the losses in the last few weeks. 

One thing I've little doubt about is that the pressure will be on the bears for the next week or so,  so bears should be patient until the great short entry point that is coming in the next few days arrives.