Monday February 8, 2016
Key Developments :
- Smallest of the 3 H&S topping patterns trigger
I am on vacation this week, so keeping this short and sweet. Today we broke the intermediate time frame H&S top neckline. The target for this pattern is 1797.26. So despite the late afternoon short covering, the bulls have a ton of work to do.
Had I been in front of my screens, it is likely I would have participated or at least covered, into this inverse H&S late in the afternoon. I always find it interesting to see how rallies like this start, and if there were any clues for us to take a position and take advantage of it.
The Bottom Line:
Despite a nice short squeeze into the close, this market is under sustained pressure and all signs at at the moment, point lower. There are 3 H&S patterns on the radar with targets all the way down to 1600. The one above is the smallest of the 3. Our focus now is to watch to see if the bulls can retake the neckline or if the bears defend it and we further follow through on the Bearish H&S pattern to acquire the 1797 target.