$SPX Head and Shoulder Pattern (Update3)

June 29, 2010 · Posted in Head and Shoulder, Head and Shoulders · Comments Off on $SPX Head and Shoulder Pattern (Update3) 

$SPX reversed its uptrend from 50% level (1131) and today it is trading near its neckline (1041). The second-shoulder is very narrow as price action is quick and quite volatile. A breakdown occurs when 2-Bars with lower-low close below neckline. H&S targets based on the height of H&S pattern are set at 1000, 932 and 865 level. A reversal of H&S is not considered until price trades for 2-3 bars above Neckline with Higher-High Closes. In this case, I would look for close above 1100 level on the upside for a reversal. Until then it is H&S pattern. H&S Pattern failure occurs when price trades above the high of the second shoulder.

$SPX.x Potential H&S Update2

June 21, 2010 · Posted in Head and Shoulders · Comments Off on $SPX.x Potential H&S Update2 

Today $SPX.x reached its 50% retracement level (1131) and reversed to close at 1113. This may be considered as a strong reversal day as price closed at the lower-end of its daily range. $SPX.x is also unable to close above the mid Fib. Band and may be signaling potential weakness. But a single day reversal does not change the trend. It may require few more days of lower-lows and higher-lows to confirm a reversal in the last week’s uptrend. I’ll monitor 1123-1124 (Mid Fib. Band level) for another upwards push. The right shoulder formation may come a clear reversal from 1131-1150 area.

$SPX Potential H&S (Update)

June 10, 2010 · Posted in Head and Shoulders · 2 Comments 

After few negative bias days, $SPX may be attempting to rally to form potential H&S pattern. The last SwingHigh was on April 26th at 1219.8. The Fib. retracement levels of 50% is at 1131 and 62% is at 1152. The first hurdle to reach this level is 200-SMA at 1107. If SPX passes this level, it may reach 1130-1150 level easily. We’ll evaluate at that level to see if it is a second-shoulder. See the Volume in the second shoulder to get some hint of H&S pattern.

$SPX in Head and Shoulder Pattern?

June 2, 2010 · Posted in Head and Shoulder, Uncategorized · 1 Comment 

S&P500 index is showing signs of positive momentum as it builds a Head & Shoulder pattern. From Oct. 2009 to Feb. 2010, $SPX formed its left-shoulder between 1050 and 1150. The Head part of H&S emerged from Feb. 2010 to May 2010 (1050 to 1200). S&P retraced to its neckline 1050 during the recent May sell-off. On Wednesday (June 02), S&P rallied over 27 points to close at 1098. This rally may be signaling positive momentum and upward direction for next two to three weeks. The height of the left shoulder is around 100 points and the peak of the Left shoulder level is near 1150. This area (1150) may act as resistance for the current rally. After the right shoulder completion, S&P may rollover towards the neckline. A retest/break below the neckline (around 1050) would signal completion of Head and Shoulder pattern. If H&S pattern materializes, the lower targets for the S&P is around 900.