I’d be impressed if the bears were able to deck OPEX — the perennial champ — and let the H&S pattern play out just yet. But, here we are, at the bottom of the nice little channel that’s guided the upside since 1357 on April 10. I suspect the sell-off will be limited to 61.8% of the rise, or 1370.
The nice thing about the .618 is that it leaves open the possibilities of a Gartley, with a reversal at the .786 at 1365, or extension to a Crab’s 1.618 at 1335 — which would be a nice level at which to start a back test of the neckline.
If there’s one thing you can count on these days, it’s the market’s insistence on maintaining maximum ambiguity for as long as possible.