This turned out to be controversial according to comments in Twitter after this article. I believe there was a non-confirned head and shoulders. Others believe that there was none in the first place. Some others still say that there was one but it was of continuation type.
Head and shoulders in S&P 500/SPY?
- Thread starter lftrader
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Porper
Ralph Nelson Elliott
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All Patterns fail from time to time. Also, an H&S continuation pattern is only recognizable after the event...i.e. when the neckline is penetrated.
Wysiwyg
Everyone wants money
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I made some observations from about the shoulder formation through to the bear trap neck line break. My last guess was a possible rise to new highs. As I noted in my first H&S comment I did not like the pattern. They are obvious so I posted on it. This is my first post 13 May ....
and last post 25 May ....
The Americans like to bleed the bears and bulls dry before any significant move. :bad:
Regarding TA, a reversal pattern (I hate this one myself) head and shoulders is forming but (and a big butt) I have seen these things become corrections just as easily with the neckline as support. Alternatively again one last run up before falling away. Take your pick.
and last post 25 May ....
Obligatory one last short squeeze before falling away is seen often on topping patterns and makes the H&S pattern a lot. The fake breakdown of neck support (bear trap) was noted the other day. It's a hell of a manoeuvre and you would think traders are aware that this does happen. Even this short squeeze could turn into a rally to new highs. Mr. Market isn't a nice person if you tell it what you want to happen next. It seems to have a strong dislike of in too soon.
The Americans like to bleed the bears and bulls dry before any significant move. :bad:
How true that is!
