Probable "Head And Shoulder" Pattern In S&P 500
Bishnu Prasad Basyal | Aug 30, 2017 10:51PM ET
Probable "Head and Shoulder" pattern is on the making in S&P 500 if it remains below 2475. A break below 2420 will confirm such pattern. If confirmed then this index may drift towards 2350 very soon. However, a break above 2475 will invalidate any probility of "Head and Shoulder" pattern.
If we look at the intraday chart then it is bocoming more probable. The bounce from the low 2417 made on August 21, 2017 may face resistance near upward trend line of up sloping channel. Further, the red trend line also suggest a significant resistance near 2470. Apart from these levels, if it remains below 2475 then it will maintain the series of lower highs as well.
To conclude, I am reiterating my view point that if it remains below 2475 then it is highly probable that S&P 500 is making "Head and Should" pattern which is bearish sign for the market (at least for the short term).
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