S&P 500 Head and Shoulders Continuing to Develop
Just a quick overview: the other day I had suggested that a head and shoulders pattern was developing on SPY and the ES Futures. And I pointed to the possibility that the right shoulder was, in fact, forming as we speak. If that is the case, it should indicate this tremendous bear market rally from the March lows is coming to a conclusion, or already did at the top of the "head."
I just wanted to point out today just what other pattern makes a head and shoulders pattern a head and shoulders pattern. The right shoulder is actually a big bear flag, which we can clearly see in this chart here. So, let's see if the markets continue to deteriorate from this point.
Note: I have sort of been expecting a bit of a faster selloff than what we've seen over the last few days, so I am open to a different outcome: that we have one more final push up to about SPY 3000 before capitulation begins. But, that is a secondary interpretation so long as this head and shoulders continues to look so good.
I just wanted to point out today just what other pattern makes a head and shoulders pattern a head and shoulders pattern. The right shoulder is actually a big bear flag, which we can clearly see in this chart here. So, let's see if the markets continue to deteriorate from this point.
Note: I have sort of been expecting a bit of a faster selloff than what we've seen over the last few days, so I am open to a different outcome: that we have one more final push up to about SPY 3000 before capitulation begins. But, that is a secondary interpretation so long as this head and shoulders continues to look so good.
Operación activa:
I think the real key will be SPY 272.