The most widely watched head and shoulders neckline in recent memory on the S&P has been broken. A debate has raged whether such an obvious event is a bear trap or if it portends a serious turn down right in the sell-in-May-and-go-away window. Thank you FED open mouth committee for pushing it over the edge today.
My head says it's a trap, but my dark heart hopes it hits nothing but air on the way down since my system is in cash and looking for a bargain. Since hope is a really poor trading strategy, I'll just let my system make the decision. The next risk window is this coming Monday the 23rd so the first test if it's the real deal or not should come very soon.
Regards,
Douglas