BIDU Update

We looked at BIDU earlier in the week and saw the potential for a false breakout from the large triangle, this is another that seems to be setting up a nice head fake trade.

 Here's the large triangle formation that is most likely a top, but nothing is what it seems in price action. We expected a head fake breakout move and it looks like we are getting one.

 This is a very bearish combination of 3 candles that is a known reversal set up. If we get some upside volatility tomorrow off a market bounce we may not see a decline tomorrow or at least not early, but all the pieces are falling in to place.

The positive divergences in BIDU that sent it higher and the leading negative that suggests the breakout move is being distributed and quite strongly.

A close below $145 should confirm the head fake breakout, although we may get intraday signals well before the close to get in to the trade earlier.