If you want to be a successful trader, you need to understand what levels are important and why they are important. Don't waste your time with foolish things like Harmonic Charts, Elliot Wave, or Gann Theory. I can honestly tell you that in my two decades as an institutional hedge fund trader, I never once heard a successful money manager or trader mention these things. But I can also tell you that successful traders and managers know where the important levels are.
There is a lot of resistance just above current levels in equities, so my guess is that the markets will either consolidate or head lower. I would not be long the market until these levels are decisively broken to the upside.
For example, the SPYs recently ran into resistance around the $280 level. There is resistance at this level because it was resistance in February, March, June and last month, and it was support in July. It will probably continue to be resistance in the near-term.
The XLKs are trading below important resistance around the $68.60 level. There is resistance around this level because it is where the lows were in May and June and it is also where the market found a bottom in October. There will probably continue to be resistance here in the short-term.
The XLVs are testing resistance around the $96 level. There is resistance at this level because it is where the all-time highs were in September. They are overbought so expect some consolidation or profit-taking.
The XLEs are testing resistance around the $66.50 level. This level was support in February, March, and April. It will probably continue to be resistance in the short-term.
The XLFs are testing resistance around the $27 level. This level was the bottom from March through June, and resistance recently. Longer-term it is easy to see the importance of the $25 level.