The Head & Shoulders Top
The chart above was posted on Briefing.com today in reference to the technical "head and shoulders" top formation that so many traders are talking about.
I see it pretty clearly, and it could come to fruition in the near-term, but first I think we will see an oversold bounce from the SPX 870-875 level which was tested today. If the SPX is unable to get above its 50-day average and hold there, then we could see another leg down in the SPX 845-850 area.
But I think these technicians are missing a bigger pattern, and that is the larger head and shoulders bottom that is developing on the charts. Tomorrow I will try to post what I think is a potential H&S bottom formation in the making, and this pattern has longer-term bullish implications.
Have a good night--