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Thursday, September 8, 2011

H&S Alert

Bears have been amply rewarded by the large H&S pattern that completed in early August.  The new ones now shaping up will make that one look puny by comparison.

Pure speculation, but if the H&S and Butterfly patterns play out on the daily chart [The Big Picture] we would complete a larger H&S pattern.  The initial target would be 820, but along the way we'd create a new neckline indicating 743.  Seen here on the weekly chart...

Also, note how clearly the wave count is laid out on the weekly RSI.


  1. Interested in exchanging links? I have added your website to mine.

  2. So where will the S&P be (approx) this time next week ?

  3. Ahhh... spoken like someone with expiring puts. Me, too.

    If the next leg down is a wave 3 of 5 of 1 down, it should be more aggressive than 1 of 5 -- which fell 90 points in 3 tdg days (9/1 - 9/6).

    I'm looking for 135 more points total, and I'm betting that most of that move occurs by next Friday.

  4. Great answer...even if you're half right. We'll see.