Bears have been amply rewarded by the large H&S; pattern that completed in early August. The new ones now shaping up will make that one look puny by comparison.
Pure speculation, but if the H&S; and Butterfly patterns play out on the daily chart [The Big Picture] we would complete a larger H&S; pattern. The initial target would be 820, but along the way we’d create a new neckline indicating 743. Seen here on the weekly chart…
Also, note how clearly the wave count is laid out on the weekly RSI.
Comments
5 responses to “H&S Alert”
Great answer…even if you're half right. We'll see.
Ahhh… spoken like someone with expiring puts. Me, too.
If the next leg down is a wave 3 of 5 of 1 down, it should be more aggressive than 1 of 5 — which fell 90 points in 3 tdg days (9/1 – 9/6).
I'm looking for 135 more points total, and I'm betting that most of that move occurs by next Friday.
So where will the S&P; be (approx) this time next week ?
Thanks, I'll check it out.
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