Technically Speaking: Topping Patterns Popping Up Everywhere – Investment Watch
As we discussed with our “The good news is that the S&P 500 held its 50-dma during its recent selloff. With the market getting back to more oversold levels, we are likely to see a counter-trend rally for a few days that could get us back above the 20-dma. It will be necessary for the rally to set new highs to negate the “head and shoulders” pattern. If the market rallies, fails, and breaks the neckline, we could well see a deeper correction ensue.” There is an important caveat to this analysis. The start of “head and shoulder” patterns occurs with quite some regularity dur...
Source: investmentwatchblog.com