SPX Daily Chart H&S Pattern

The overbot conditions, rising wedge and negative divergence created the spank down from 1597.  The money flow has not broken down as yet and helps the bulls produce a recovery move to start the new week of trading. The other indicators remain weak and bleak. The 50-day MA at 1543.90 provided a support base for price last week. The blue H&S is developing with head at 1600-ish, neck line at 1540-ish and target at 1480-1485 should the 1540 fail.  The right shoulder created last week at 1576 is somewhat weak and a more substantive right shoulder may be on tap for this week. The 20-day MA at 1564.06 is important resistance, also the 1576 level.

Note the strong selling volume last week and weaker buying volume. Watch the range formed by the 20-day MA above and 50-day MA below. Bulls will be in a happy mood above 1564, bears will be happy under 1543. Projection is for a right shoulder to form for the H&S to begin the week and then sideways to sideways lower prices moving forward with failure at the 50-day MA at 1543 then at the H&S neckline at 1540 anticipated. If the bulls push up through 1564, then the 1576 would be targeted. 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.