The inverted H&S is shown that has been discussed in the Comments section; head at 1488, neck at 1525, so target would be 1562 if the 1525 is violated to the upside. Keystone does not like to use inverted H&S patterns after rallies; the inverted H&S is much more useful after long declines. However, in trading an open mind is your best friend so the inverted H&S must be monitored. Bulls will obviously throw confetti if 1525 is taken out, if 1531 gives, they will begin a new drunken spree as the SPX all-time highs will be targeted. Bears want nothing to do with all that and are thinking that they already placed the market top and plan to take markets lower for the considerable future. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
thanx for all you do. am I seeing a diamond top in s&p dating from 1/28?
ReplyDeleteYep, you are certainly correct but the diamonds are tricky, sometimes they create reversals, but sometimes a diamond continuation will send prices higher. Perhaps if it can come out to a point on the right side at 1500-1505 that will create decision time, and then the break up or down from there will tell the tale. Looks like two to four days would be needed to finish creating the diamond, then we should see what happens.
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