News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Taiwan formally applies to join pacific trade pact CPTPP - Official News Agency
  • ECB's Muller - Given the currently very favourable financing conditions and the solid recovery, I am not sure if increasing the volume of APP purchases in the Spring is the best way to avoid a cliff effect
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/qwLAWMpCGn
  • 🇺🇸 MBA Mortgage Applications (17/SEP) Actual: 4.9% Previous: 0.3% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇺🇸 MBA Mortgage Applications (17/SEP) due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrLeetw https://t.co/fs0ldanq41
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrX2BzZ https://t.co/Wfr6fQ9PTr
  • Of note, worth being cautious on the authenticity of this report given the source https://t.co/i9jcU0OQF4
  • Sources close to the Chinese Government have told Asia Markets a deal that will see China Evergrande (3333 HK) restructured into three seperate entities is currently being finalised by the Chinese Communist Party and could be announced within days.
  • Shadow MPC as hawkish as ever - They have been calling for the BoE to end QE early since June - Often a big difference in what people think a central bank should do and will do https://t.co/RAakSI8gI6
SPX 500 Head-and-shoulders, Break or Fake?

SPX 500 Head-and-shoulders, Break or Fake?

Paul Robinson, Strategist

Talking Points:

  • SPX500 head-and-shoulders pattern receiving a lot of attention in the media
  • Being careful not to anticipate the break, a different pattern could emerge
  • IF a break occurs, last October lows likely to be tested

Currently, there are a lot of eyes on the head-and-shoulders pattern in the S&P 500, which is generally regarded as a red flag. It plays to the notion that popular opinion is generally the wrong one. This does not mean it won’t play out as ‘expected’. The textbook way to play H&S formations is to wait for a confirmed break (1975 in this case); the conservative way is to wait for a break and retest of the neckline before taking entry. Target set near October lows between 1819 & 1860. IF we do not see a break in the neckline, a triangle formation could be in development, meaning more time before a material move occurs.

SPX500 4-HR: Oct ’14 – Present

SPX 500 Head-and-shoulders, Break or Fake?

--- Written by Paul Robinson, DailyFX Research

To contact Paul, you can email him at instructor@dailyfx.com

www.dailyfx.com/forex/market_alert/2015/01/29/SPX-500-Head-and-Shoulders-Break-or-Fake.html

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES