Tuesday, July 23, 2013

Inverted head and shoulders pattern

Well yesterday was a very boring day on the market, however if you zoom down your time frames on the SPX 60 minute chart, you will see something very interesting.

Below is the 60 minute chart for SPX and you can see that even though today was rather flat, it seems we have created a bullish inverted head and shoulders pattern. If we break the neckline sitting at about the 1697 area. that would be BULLISH.

Inverted head and shoulders patternInverted head and shoulders pattern
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2 comments:

  1. Gary Morgan11:25 AM

    Or not bullish, given today's decline.

    I always thought inverse H&S patterns were valid only at major bottoms Bill?

    I see a 4-8 month topping patten just started though, FWIW (not much).

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  2. Bill7:10 PM

    Seeing tonight's HSBC PMI this evening Sugar you may be correct in your comment, caution is warranted.

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