Skip to content
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
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

--- 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