SPX 60-Minute Chart 200 EMA H&S Pattern

On the way up the inverted H&S's (head and shoulder pattern) were in play; the dark blue pattern targeting 1562 which was achieved and the light blue pattern targeting 1572 not achieved, but considering the touches for the 1525 neck line, the dark blue inverted H&S is far more important. As the markets ebb and flow, and the tide rolls in and out, so do the markets, where price topped with the rising wedge, overbot conditions and negative divergence (red lines), and now moves lower. The indicators are all weak and bleak preferring to see lower lows in price.

The red H&S is in play with head at 1564, neck line at 1549, target 1534 in play now. Note the confluence of the 200 EMA, which is the most important metric on this chart, at 1289, and the prior resistance lines, now support, at 1525 and 1530. There is a landing zone for price in the 1525-1534 area where major decisions must be made. If the SPX loses the 200 EMA at 1529, big trouble is ahead for the markets. The bulls are in control now with the SPX above the 200 EMA. 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.