SPX Daily Chart H&S Neckline Failure

Chart shows the neck line failure of the long term H&S; sending many traders into a tizzy. The dark blue represents the closing numbers; head at 1365, neck at 1257, target 1149. The light blue uses the highs and lows; head at 1370, neck at 1249, target 1128. Note how this 1125-1150 zone is significant horizontal support which bolsters its significance as a future target. The green lines show how the MACD line and the stochastics are agreeable to a recovery rally here in the near term, but the red line shows the RSI printing lower and lower numbers, which is bearish moving forward; ditto MACD histogram. Thus, a relief rally is in order, at least back kisses of the ruptured neck lines which is now occurring.

Now that the necklines failed, however, the lower targets for the H&S are in play and will probably become apparent as the Autumn leaves decorate the lawn. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.