Small Head and Shoulders Bottom on ES

Small H&S bottom on the ES hourly, with neckline around the 780 area. A break thru there, which holds on the hourly targets about 820. Obviously these formation do fail. I'm long with a stop under todays low. I'll be moving the stop. IT

Small H&S bottom on the ES hourly, with neckline around the 780 area. A break thru there, which holds on the hourly targets about 820.

Obviously these formation do fail. I'm long with a stop under todays low. I'll be moving the stop.

IT

Saw that yesterday and as you say, can't put much faith in such a pattern these days. $SPX 784 is a Gann square. That is the nut to crack in the short term. That will be the new bull/bear line IMO. Get above it and we will see major short covering, stay below and we will head lower.

XLF is trying to do the same but is further head and trying to break out of its H&S reversal pattern.

cheers,

john

Edited by SilentOne, 26 February 2009 - 10:58 AM.

Small H&S bottom on the ES hourly, with neckline around the 780 area. A break thru there, which holds on the hourly targets about 820.

Obviously these formation do fail. I'm long with a stop under todays low. I'll be moving the stop.

IT

You must be the third person since yesterday who has posted about the rev H&S patern. Yes, it seems like a valid pattern. Just perfect. I am seeing a sign of a bear pattern targetting SPX 728.

I think we are headed to 800. IMHO if we can't go up today this market could really swoon ST.

Small H&S bottom on the ES hourly, with neckline around the 780 area. A break thru there, which holds on the hourly targets about 820.

Obviously these formation do fail. I'm long with a stop under todays low. I'll be moving the stop.

IT

You must be the third person since yesterday who has posted about the rev H&S patern. Yes, it seems like a valid pattern. Just perfect. I am seeing a sign of a bear pattern targetting SPX 728.

What I should have said is that the pattern is not complete unless it breaks higher than 780 ES on the hourly, and holds. That hasn't happened yet. I jumped the gun (and so did others), and at least in my case may be stopped out before the ink dries on this post. We'll see though, and frankly, it may stop me out and then turn higher. Still, it's not much of a risk.

IT

fwiw..we presently have a bearish nonconfirmation in place as of about 11am...oex has made a new high above yesterday's high without ES or SPX confirming. Divergence on the 15 min oex chart on the high.... ..may not last...but it's there for the moment...

Or what you think is the right shoulder may be a simple ABC upward correctiuon of the latest leg down, and we just had a point C. Disclaimer : I don't mean any ewave terms. Just a 3 step move up.

Whatever it was...I'm stopped out. The pattern is still there, so we'll see whether the bears can actually get this down, or whether that was just a stop run. IT