One of the most followed chart patterns is the classic head and shoulder. 'When it is create over minimum of 3 months.
SPY created the left should in Nov 8-22 the head Jan2 and the right shoulder Feb 2-9.
A Head and shoulder pattern over 120 days in more reliable than one of 20 days.
The neck line is 426
We have broken the neck line 2/24 and again in March 14 but news and excess money supply has prevented the massive drop expected by this formation.
This does not invalidate the formation is just prolongs the right shoulder formation.
With the increase in interest rates a second warning message......I must move into a protective posture.
The expected downside move is a minimum of 340 or 20% drop.
If interest rates trigger recession the much deeper drop to 250 is likely
I beleive that a good traders must head the signs and predicate his move from technical chart patterns
SPY created the left should in Nov 8-22 the head Jan2 and the right shoulder Feb 2-9.
A Head and shoulder pattern over 120 days in more reliable than one of 20 days.
The neck line is 426
We have broken the neck line 2/24 and again in March 14 but news and excess money supply has prevented the massive drop expected by this formation.
This does not invalidate the formation is just prolongs the right shoulder formation.
With the increase in interest rates a second warning message......I must move into a protective posture.
The expected downside move is a minimum of 340 or 20% drop.
If interest rates trigger recession the much deeper drop to 250 is likely
I beleive that a good traders must head the signs and predicate his move from technical chart patterns
Trade closed: target reached
Be careful the politicians are controlling and they exhibited complete ignorance