Overbought markets unwinding but no full bearish trend change per CoFo Scout yet.

Analysis of CoFo Scout readings

Selling picked up as European session opened, working off overheating indicators. Bears trying to assert control.

Despite local direction change, higher tf longs still clearly dominating weaker shorts, limiting downside momentum.

But strong local shorts present and attempting to expand influence across other timeframes.

Long entries require lower tf long dominance again. For shorts, need higher tf shorts in control.

Data suggests a correction rather than total trend reversal for now. However failure to hold key supports would raise likelihood of more sustained down move. Will monitor price action and Scout signals closely to catch next directional move.