H&S Alert

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

H&S Alert — 5 Comments

  1. 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.