S&P 500 seems it loves Head and Shoulder pattern !
Look at 2010 reaction and huge drop.
Look at the recent red H&S pattern and its reaction.
And let's see the new GIANT head and shoulder pattern which is being developed and will be finished soon, may be this month or next month.
Going back to the past, we can see the result of head and shoulder pattern few years ago which caused a huge drop.
The huge and super strong trend line which was developed for several years basically after GFC was broken by huge GAP sell off last month.
The price is going to touch and kiss the trend line for the last time, because the price likely is not going to see the peak high again for a long time.
The Stochastic is overbought, so the possible entry point will be around 2065 base on price action and the stochastic moving down below 80, and RSI close enough to 70.
Let's see
Look at 2010 reaction and huge drop.
Look at the recent red H&S pattern and its reaction.
And let's see the new GIANT head and shoulder pattern which is being developed and will be finished soon, may be this month or next month.
Going back to the past, we can see the result of head and shoulder pattern few years ago which caused a huge drop.
The huge and super strong trend line which was developed for several years basically after GFC was broken by huge GAP sell off last month.
The price is going to touch and kiss the trend line for the last time, because the price likely is not going to see the peak high again for a long time.
The Stochastic is overbought, so the possible entry point will be around 2065 base on price action and the stochastic moving down below 80, and RSI close enough to 70.
Let's see
The time has been reached and the price touched the Super Trendline.
Now is the time to think of selling , however more confirmation better to close reasonable bearish candle these days and and stochastic leaving the overbought area and heading towards oversold.
Then we can place a trade
PLAN B :
If price continues above the Super Trendline, we must wait for the price going below the trendline and closing below the trendline, then we can place the short trade with very high Risk Reward Ration.
Goog Luck traders