• spx-head and shoulders pattern

This is still a working pattern and by no means is there any guarantees behind it. 

But I spend a lot of time every day going through probably a thousand charts or so, and I spend a lot of time staring at the charts of the major indices. Well, today, this pattern leaped out at me on the daily chart…..

It is a massive head and shoulders pattern that could be forming!

Granted if we just blow through the highs of the year, this pattern means nothing, but if we start to see the selling pick up again and start to make a move back towards those August lows on SPX, then this pattern becomes very, very legitimate.

Now, based on on what we are seeing today and yesterday out of the market and the whole month of October, I’m not saying that we should all go sell our long positions. I’m still 30% long/70% cash right now (from 60% long this morning). I’m just saying watch this pattern and whether it develops further.  

I can’t say with any certainty that it will happen, but it is definitely worth keeping an eye on. 

Here’s the SPX Head and Shoulders pattern:

spx-head and shoulders pattern 

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