The slanted red resistance line held again today. We ended the day still above the key 18 SMA so the bulls still have a chance. However, it looks like the resistance in this area is pretty stiff. We spent several hours today near the highs trying to push higher and it just would not go. Here is the 130 min. SPY chart.
It looks like we formed the right shoulder of the possible head and shoulders pattern I mentioned yesterday.
I added the green line for the neck line. A break of that green line should target a move down to the 128.25 area. Notice we closed under the 18 SMA this time. This chart is in a position where it could roll over pretty easily now. We will just have to see if the bears show up again tomorrow or not.
Bob
2 comments:
What are your thoughts on the potential inverse Head & Shoulders pattern on the SPY daily chart?
I am waiting to see if we go down and make a right shoulder. Now that we have spent several days in consolidation at the potential neck line of the pattern, I suspect we might overshoot the right shoulder if we go down from here.
Bob
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