SPX500 Potential Head-and-Shoulders Top Coming Into Focus
- Head-and-shoulders topping potential in SPX500
- Testing neckline at 2000
- Target potential below 1900
The SPX500 is probing the neckline of a multi-week ‘head-and-shoulders’ pattern. An intermediate-term sell signal will be triggered on a close below 2000 on the 4hr/Daily time-frame. Once triggered, traders will be looking at short-term/intra-day short set-ups down to the 1890 area, which completes the measured move of the H&S formation. Measured moves are determined by subtracting the height of the pattern from the price where the neckline is broken. Stay tuned for updates as things develop further.
SPX500 4-hr Chart: Oct ’14-Jan ‘15
--- Written by Paul Robinson, DailyFX Research
To contact Paul, email him at firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.