SPX action remains consistent with the classic inverted head and shoulders pattern.
It's always best to keep in mind the H&S pattern is about a 33% win rate pattern. 2/3 times it fails.
However, on that 1/3 times, it's absolutely epic. And this all shapes up so far.
We've broken over any of the trendline based "Necklines". I think to really solidify the break we'd have to see a braking of the flat range line (Which we're currently trading at now).
As a general rule, breaks of very flat necklines tend towards explosive moves. If the H&S is in play here, the forecast is firmly towards a strong uptrend that starts to take on parabolic properties as it develops - meaning it starts in gradually and get steeper as it goes. In this type of price would, our consistent uptrend over the last 3 weeks may have been the foothills of the move and we'd be heading into the real mountain.
It's always best to keep in mind the H&S pattern is about a 33% win rate pattern. 2/3 times it fails.
However, on that 1/3 times, it's absolutely epic. And this all shapes up so far.
We've broken over any of the trendline based "Necklines". I think to really solidify the break we'd have to see a braking of the flat range line (Which we're currently trading at now).
As a general rule, breaks of very flat necklines tend towards explosive moves. If the H&S is in play here, the forecast is firmly towards a strong uptrend that starts to take on parabolic properties as it develops - meaning it starts in gradually and get steeper as it goes. In this type of price would, our consistent uptrend over the last 3 weeks may have been the foothills of the move and we'd be heading into the real mountain.