US markets taking a pause?

The price action formation on the SPX seems to be indicating that the market in the US could be taking a pause for now. Price had pulled back from all time highs recently, but now is seeing rejection from the 20EMA. If this trend continues we could see price correcting to the longer term trendline and then the 200EMA on the daily chart. A short position can be initiated keeping the following levels in mind.

SHORT BELOW : 4346
STOP LOSS : 4420
TARGET 1 : 4272
TARGET 2 : 4198
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A similar formation is also evident on DJIA, indicating that this could be a market wide pause, something which could lead to a short term correction.

If this scenario sustains, we could see this bearishness spill over to the Indian markets as well.
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Manage risk properly and trade you plan.
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Comment:

After almost touching the first target, SPX went back to the stop loss level. But it has pulled back to the 20EMA and has given a continuation bar again at the latest bar of 11th Oct. There should be downward continuation below the low of the candle of 11th Oct. Keep watch.