Rusty Market Musings » Head & Shoulders

07/07/2009 H&S pattern completed

LtPinback — Tue, 07 Jul 2009 22:35:23 +0000

A flat opening and a downtrend for the rest of the day ending at the 880 support level. Volume was below average.

S&P 500 Index 5min Chart

S&P 500 SPDRs 5min Chart

Price completed the Head & Shoulders pattern and it is hanging at a major support level at 880. The H&S price target for the S&P 500 is around 824 which in turn is as close as you can get from the next major support at 825.

S&P 500 Index Daily Chart

06/07/2009 Volatility on looming H&S pattern completion

LtPinback — Mon, 06 Jul 2009 22:16:30 +0000

Market opened with a gap lower and a classic close-the-gap move to the previous session’s low that was quickly followed by a steep sell-off that printed 886.36 is the S&P 500. From there the market managed a slow upward trend to end barely in the green. Volume was below average.

S&P 500 Index 5min Chart

S&P 500 SPDRs 5min Chart

A very volatile session with all eyes on the developing Head & Shoulders pattern. The Institute for Supply Management’s non-manufacturing report was slightly better than consensus.

S&P 500 Index Daily Chart

02/07/2009 Unemployment rate pull back

LtPinback — Thu, 02 Jul 2009 22:04:53 +0000

Large gap lower, a broad-based sell-off on the unemployment rate data and more camping on the last day before the holiday. Volume was dismal.

: S&P 500 Index 5min Chart

: S&P 500 SPDRs 5min Chart

Unemployment Rate reaches 9.5 percent, the highest in nearly 26 years. A Head & Shoulders pattern is almost complete and thus a complete meltdown to the 800 level is a very real possibility.

: S&P 500 Index Daily Chart