Wednesday, August 25, 2010

The Current Head and Shoulders Formation is...

...a beauty, on the S&P 500. It shows the difficulty the stock market is having in trying to reach new highs, as heavy selling comes in long before the old highs. A break below 1,000 is a break below the "neckline", and would indicate that the index has passed below where you would expect buyers to come in (at or above the neckline), and thus a sign of serious trouble for the stock market.

No comments:

Post a Comment