Poor correction attempt on SP500 should help the bullish cause. + EURUSD update.

I had what historically was a very bearish 2 day-candle pattern on the SP500 over Monday and Tuesday which I highlighted in yesterday's post.. However this failed to follow through and was totally annulled with yesterday's rally. This suggests to me that the market is not ready yet for a correction, and that the bulls and buy-dip traders continue to hold the upper hand over the bears and sell-rally traders; thus favouring further upside for now.

EURUSD FX

EURUSD has rebounded nicely over the past 24 hours, and I see at least a re-attempt at last weeks high at 1.4140. I am looking at two short-term patterns driving this right now. The first chart below shows a Failed Head + Shoulder pattern, it was probably always doubtful that this was a valid Head + Shoulder pattern given the weakness of the Right Shoulder relative to the Left Shoulder. Failed H+S patterns often return to the top of the head as a minimum. The second chart shows a Falling Wedge pattern, I have previously discussed Falling Wedges and have identified four different types of Falling Wedge patterns (See illustration below). The current Falling Wedge confirms ideally to a Type 1 'Falling Wedge', suggesting strong short-term bullish potential. -  Of course bigger picture considerations take precedent over the shorter-term patterns, and the high of last weeks two bearish candles at1.4122 and 1.4158 will act as strong overhead resistance. However, a clear break over this resistance should favour a move in accordance with my my views expressed last week in this post here. --- One final point, the G20 finance ministers and central bank governors meet this weekend, I would be surprised to see last weeks highs taken out ahead of this event, and the potential for further volatility remain highs particularly as this could see some feisty headlines.