IWM Puts (June 21st / $117)

I was just looking at the IWM June $117 puts and considering closing them as they are a tool for me, not a lotto ticket, they have a small gain,

This isn't what I'd normally look for with options, but for a day and the fact they are fairly close expiration and time decay becoming a bigger issue, I had thought about it and moving them out to July perhaps as I like to have at least 3 times more time on the expiration than I think I'll need.

With the Daily candle looking as I had suggested earlier, a loss of momentum,

 Some people see an Inverse H&S at this price pattern with the neckline at the red trendline. However, for a "potential" breakout of such a pattern, the long upper candlestick wick yesterday indicating higher prices were rejected and the Doji-Star today indicating a complete loss of momentum which opens the door to a reversal, I had to think twice about closing these out at a 15+% gain.

Just checking the volume as it is the most important part of confirming a H&S and even more so with an Inverse H&S bottom, the rally to the neckline before the break above it shows diminishing volume, this is the point where it is imperative that volume rise significantly (on this rally), the breakout volume should be the highest by far and it's virtually the lowest of the entire pattern. No one using volume analysis which is the only way to confirm a true price pattern from a random or manufactured one, could possibly call this an inverse H&S, but we know most traders don't bother looking at volume, but they do like the price patterns which makes this a perfect bull trap which is the point of a head fake move above the SPX 1900 3-month range.

The 3C charts are clear across the averages and the IWM...

This clear topping process in the IWM...

 is about the best entry you could ask for, other than the actual top of the head, but in this case, I'd be more than happy to settle for top of the right shoulder. After 5 years of declining volume off the 2009 lows (look at any bull market, volume expands with higher prices) this rising volume in the topping process is more than interesting, I suspect this is the BofAML Institutional net selling. The low volume rally on the right shoulder is EXACTLY what I'd want to see.

Increasing volume on the moves down is bearish, decreasing volume on the moves up like the current IWM move to the far right, is bearish, I'll leave the rest unmarked if you want to follow volume.

The 60 min 3C chart goes negative in to the left shoulder, leading negative in to the head and never recovers, 3C doesn't make a single higher high with price as the right shoulder is carved out, reminiscent of 2007 in many ways.

This large topping process is very clear on a daily chart, just follow the trend, a new leading negative low at the right shoulder.

As far as closer term, it's difficult to let go of those puts when every chart from 5 min to 60 on the Index Futures is leading negative.

TF 30 min nose diving

TF 60 min doing the same.

I still prefer SQQQ right now, however SRTY may be coming up very soon. Also FAZ is a position I would consider starting to build a position or fill one out, I'll have XLF/FAZ and other confirming charts up before I put the Trade Idea out, but I think it has to be very soon as even the banking sector stocks are coming up in the sell scans.