$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.